745 
192.1 


U.S.    SHIPPING  BOARD 
Report 


Wmi 


fi7TH  CONGRESSl  QFTSTATP  /DOCUMKNT 

1st  Session     /  bi^iNAlh.  |     No.  :« 


REPORT  OF  U.  S.  SHIPPING  BOARD 


LETTER 

FROM 

THE  CHAIRMAN  OF  THE  SHIPPING  BOARD 

TRANSMITTING 

IN  RESPONSE  TO  A  SENATE  RESOLUTION 
OF  DECEMBER  27,  1920,  A  REPORT  COVER- 
ING THE  TRANSACTIONS  OF  THE  UNITED 
STATES  SHIPPING  BOARD  AND  THE  EMER- 
GENCY FLEET    CORPORATION    FROM    ITS 

INCEPTION  TO  FEBRUARY  28,  1921  A^ 


June  2,  1921. — Referred  to  the  Committee  on  Commerce. 
June  9,  1921. — Ordered  to  be  printed. 


WASHINGTON 
GOVERNMENT   PRINTING    OFFICE 

1921 


LETTER  OF  TRANSMITTAL. 


United  States  Shipping  Board, 

Washington,  June  2,  1921. 
The  President  of  the  Senate, 

Washington,  D.  C. 
Sir:  I  have  the  honor  to  transmit  herewith  a  detailed  reply  to 
Senate  resolution  413,  dated  December  27,  1920,  introduced  by- 
Senator  Walter  E.  Edge,  instructing  the  United  States  Shipping 
Board  to  submit  a  report  on  moneys  appropriated  from  September  7 
1916,  to  November  30,  1920,  on  profits  capital,  number  and  descrip- 
tion of  vessels,  s^^stem  of  accounting,  contracts  of  operation,  number 
of  employees,  etc.  This  reply  has  been  prepared  and  covers  the 
transactions  of  the  United  States  Shipping  Board  and  the  Emer- 
gency Fleet  Corporation  to  February  28,  1921,  which  date  is  some- 
what later  than  that  required  by  the  resolution. 

A  previous  tentative  reply  to  this  resolution  was  submitted  under 
date  of  March  1,  1921,  but  did  not  fully  cover  the  various  inquiries 
contained  in  the  resolution. 
Respectfully, 

W.  S.  Benson, 

Chairman. 


"1^ 

r 


451665 


REPORT  OF  THE  UNITED  STATES  SHIPPING  BOARD. 

(la  answer  to  Senate  resolution  No.  413.  ] 


United  States  Shipping  Board  and 

United  States  Shipping  Board 
Emergency  Fleet  Corporation, 

June  1,  1921. 
To  the  President  of  the  Senate 

Washington,  D.  C. 
Sir:  Pursuant  to  directions  of  Senate  resolution  413,  we  have  pre- 
pared and  now  render  our  detailed  report  in  answer  thereto.  This 
report  is  in  addition  to  the  report  submitted  you  with  our  letter  dated 
March  1,  1921.  (See  p.  4432  of  Congressional  Record  dated  Mar. 
2,  1921.) 

2.  The  information  given  herein  is  in  answer  to  points  contained  in 
the  resolution  and  the  answers  to  such  points  are  given  in  the  same 
order  as  points  are  set  forth  in  the  resolution. 

3.  We  have  prepared  our  entire  report  for  the  period  "From  incep- 
tion to  February  28,  1921,"  in  place  of  "From  September  7,  1916,  to 
November  30,  1920."  This  was  done  in  order  that  a  more  recent 
reflection  of  the  activities  of  the  organization  could  be  had. 

4.  In  the  preparation  of  Exhibits  A  and  B  we  have  eliminated  some 
of  the  accounts,  such  as  "Reserves,"  which  are  bookkeeping  entries 
and  represent  no  actual  values  or  indebtedness.  While  aepreciation 
and  insurance  (the  board  carried  its  own  insurance)  relating  to 
operations  of  vessels  are  proper  charges,  they  are  omitted  for  the 
reason  that  they  might  be  confusing  and  not  disclose  the  real  situa- 
tion, thus  making  the  figures  resulting  therefrom  useless  for  the  pur- 
pose for  which  the  exhibits  are  prepared.  Also  we  have  used  ship 
construction  expenditures  applicable  to  March  31,  1921,  inasmuch  as 
the  information  required  to  clearly  answer  points  relating  thereto 
was  not  available  at  February  28,  1921. 

5.  W^ith  the  foregoing  exceptions  the  data  shown  in  the  Exhibits  A 
and  B  represent  the  result  of  a  compilation  of  the  accounts  as  they 
stood  on  the  books  February  28,  1921. 

6.  Point  No.  1. —  The  total  amount  of  moneys  appropriated  for, 
and  otherwise  provided  for,  the  United  States  Shipping  Board  and 
Emergency  Fleet  Corporation,  and  the  United  States  Shipping  Board 
as  its  successor,  from  September  7,  1916,  to  and  including  I^ovember 
30,  1920. 


6  EEPOET  OF  V.   S.  SHIPPIKG  BOARD. 

The  answer  to  this  point,  with  the  exception  that  it  covers  the 
period  from  "Inception  to  February  28,  1921,"  is  as  follows: 

(l)  Moneys  appropriated  for: 

(a)  United  States  Shipping  Board — 

(1)  Permanent  fund  (act  of  Sept.  7, 

1916).  to  purchase  capital 
stock  of  Emergency  Fleet  Cor- 
poration   $50, 000,  000.  00 

(2)  Salaries  and  expenses,  1917  (act 

of  Sept.  7.  1916) 100,000.00 

(3)  Salaries  and  expenses,  1918  (act 

of  June  12,  1917).. :■--.•■.■  342,500.00 

(4)  Investigation  of  foreign  discrimi- 

nation against  vessels  and  ship- 
pers of  the  United  States  (act  of 
June  12,  1917) 175,000.00 

(5)  Increase  of  compensation  (act  of 

June  12.  1917) 4,633.71 

(6)  Salaries  and  expenses,  1919  (act 

of  July  1,  1918) 842,500.00 

(7)  Salaries  and  expenses,  1920  (act 

of  July  19.  1919) 772.986.00 

(8)  Salaries  and  expenses.  1921  (act 

of  Junes,  1920) 442,500.00 

(9)  Total  moneys  appropriated  for 

United  States  Shipping  Board $52,  680, 119. 71 

(6)  United  States  Shipping  Board   Emergency   Fleet  Cor- 
poration : 

(1)  Emergencv  shipping  fund — 

Art  of  June  15.  1917 $405,000,000.00 

Act  of  Oct.  6,  1917 635,000,000.00 

Act  of  Julv  1 ,  1918 1.  806,  701,  000.  00 

Act  of  July  11,  1919 500,  000.  00 

Act  of  July  19,  1919 356,  000,  000.  00 

(2)  Total  moneys  appropri- 

ated for  United  State 
Shipping  Board  Emer- 
gency Fleet  Corpora- 
tion   3, 203, 201, 000. 00 


(2)  Total  moneys  appropriated  for 3, 255, 881, 119.  71 

(3)  Moneys  otherwise  i)rovidi'(l  for: 

(u)' AllotnuMils  hy  Pn^sident  of  the  United 
Statcis  to  United  States  Shipping 
Board:-  - 

(1)  National    security    and    defense 

fund,    1918    (act    of    Apr.    17, 

1917) $27,  Oil,  682.  84 

(2)  National    security    and    defense 

fund.    1919    (act    of    July    1, 

1918) 2,  500, 743.  43 

(4)  Total  moneys  otherwise  provided  for 29,  512,  426.  27 

(5)  Total  moneys  appropriated  for  and  otherwise  provided  for 3,  285,  393,  545.  98 

In  addition  to  the  foregoing,  we  quote  in  substance  extracts  from  acta  having  to  do 
with  appropriations. 


EEPORT  OF  U.  S.  SHIPPING  BOARD.  7 

FISCAL    YEAR    1921 — SUBSTANCE    OF    APPROPRIATION    AS    SHOWN    IN    PUBLIC. 
DOCUMENT    NO.  246. 

Purposes  of  (ipprnpri'itions. — The  expenses  of  the  United  States  Shipping  Board 
Emergency  Fleet  Corporation  during  the  fiscal  year  ending  June  30,  1921,  for — 

(1)  Administrative  purposes. 

(2)  Payment  of  claims  arit^ing  from  (a)  cancellation  of  contracts,  (6)  damage 

charges,  (c)  misccllancdua  adjustments. 

(3)  Maintenance  and  operation  of  vessels. 

(4)  Completing  vessels  now  under  construction. 
Shall  be  paid  from  the  following  sources: 

(1)  Amount  on  hand  July  1,  1920. 

(2)  Moneys  received  from  operations  of  ships. 

(3)  $15,000,000  or  less  received  from  deferred  payments  on  ships  sold  prior  to 

June  5,  1920. 

(4)  $25,000,000  or  less  from  plant  and  material  sold  during  fiscal  year  1921. 

(5)  $30,000,000  or  less  from  ships  sold  during  fiscal  year  1921. 

SECTION    14. — MERCHANT    MARINE    ACT    OF    1920. 

Sec.  14.  That  the  net  proceeds  derived  by  the  board  prior  to  July  1,  1921,  from  any 
acti\ities  authorized  by  this  act  or  by  the  "Shi])ping  act,  1916,"  or  by  the  acts  speci- 
fied in  section  2  of  this  act,  except  [such  |  an  amount  as  the  board  shall  deem  necessary 
to  withhold  as  operating  capital,  for  the  purposes  of  section  12  hereof,  and  for  the 
insurance  fund  authorized  in  section  10  hereof,  and  for  the  construction  loan  fund 
authorized  in  section  11  hereof,  shall  be  covered  into  the  Treasury  of  the  United 
States  to  the  credit  of  the  board  and  may  be  expended  by  it,  within  the  limits  of  the 
amounts  heretofore  or  hereafter  authorized,  for  the  construction,  requisitioning,  or  pur- 
chasing of  vessels.  After  July  1,  1921,  such  net  proceeds,  less  such  an  amount  as 
may  be  authorized  annually  by  Congress  to  be  withheld  as  operating  capital,  and  less 
such  sums  as  may  be  needed  for  such  insurance  and  construction  loan  funds,  shall  be 
covered  into  the  Treasury  of  the  United  States  as  miscellaneous  receipts.  The  board 
shall,  as  rapidly  as  it  deems  advisable,  withdraw  investment  of  Government  funds 
made  during  the  emergency  under  the  authority  conferred  by  the  acts  or  parts  of 
acts  repealed  by  section  2  of  this  act  and  cover  the  net  proceeds  thereof  into  the 
Treasury  of  the  United  States  as  miscellaneous  receipts. 

FISCAL    year    1922,    SUBSTANCE    OF    APPROPRIATION    AS    SHOWN    IN    PUBLIC    DOCUMENT 

NO.    389. 

Purposes  of  ap pro printiori .—The  expenses  of  the  United  States  Shipping  Board 
Emergency  Fleet  Corporation  during  fiscal  year  ending  June  30.  1922,  for — 

(1)  Administrative  purposes. 

(2)  Payment  of   claims  arising  from  (a)  cancellation  of  contracts,  (6)  damage 

charges,  (c)  miscellaneous  adjustments. 

(3)  Maintenance  and  operation  of  vessels. 

(4)  Completing  vessels  now  under  construction. 

(5)  Carry  out  "Merchant  marine  act." 
Shall  be  paid  from  the  following  sources: 

(1)  Amount  on  hand  July  1,  1921. 

(2)  Moneys  received  from  operations  of  ships. 

(3)  $55,000,000  or  less  received  from  (a)  deferred  payments  on  ships  sold  prior  to 

March  4,  1921,  (h)  plant  and  material  sold  during  fiscal  year  1922,  (c)  ships 
sold  during  fiscal  year  1922. 

7.  Point  No.  2. — "  The  gross  profits  or  losses,  as  the  case  may  he, 
for  the  same  period." 

The  answer  to  this  point  is  shown  by  the  "Gross  proceeds  from 
appropriations,  allotments,  and  other  sources."  (See  item  5,  Exhibit 
A.)  We  set  forth  below  a  summation  in  order  that  a  further  dis- 
tinction may  be  had: 

Gross  proceeds  from  appropriations,  allotments,  and  other  sources 

(see  item  5,  Exhibit  A) $3,511,328,609.78 

Deduct  moneys  appropriated  for  and  otherwise  provided  for  (see 
answer  to  point  No.  1) 3,  285,  393,  545. 98 

Gross  proceeds  after  deducting  moneys  appropriated  for 
and  otherwise  provided  for 225,  935,  063. 80 


8  REPOBT  OF  U.  S.  SHIPPING  BOARD. 

8.  Point  No.  3. — '^  Net  projiU  or  Josinefi,  as  the  case  may  he,  for  the 
same  period.' 

The  answer  to  this  point  is  shown  by  "Net  proceeds  from  appro- 
priations, allotments,  and  other  sources."  (See  item  No.  8.  Exiiibit 
A.)  We  set  forth  below  a  summation  in  order  that  a  further  dis- 
tinction may  be  had: 

Net  proceods  from  appropriations,  allotments,  and  other  Rourcea 

(see  item  No.  8,  Exhibit  A  ) $3,  084,  060,  247.  88 

Deduct  monevs  approi)riated  for  and  otherwise  provided  for  (see 
answer  to  point  No.  1) 3,  285,  393,  545.  98 

Net  excess  of  expenditures  over  receipts  after  deducting 
moneys  appropriated  for  and  otherwise  provided  for 201,  333.  298. 10 

Briefly  summarized,  the  foregoing  "Net  excess  of  expenditures 
over  receipts,  etc."  is  the  result  of  the  following: 

(1)  Excess  of  expenditures  over  receipts: 

(a)  Sales $70,  ,303,  467.  62 

(b)  Suspensions,  cancellations,  etc 116,  621,  895.  35 

(c)  Shrinkage  in  values,  appraisal  versus  expenditures 128,  907,  351.  83 

(d)  Lost  vessels 76,  912,  833.  63 

(e)  Released  v  e.ssels 1 1 ,  607,  702.  89 

(/)  Statutory  limitations  of  appropriations  and  allotments 4,  016,  026.  85 

(g)  Salaries  and  expenses,  recruiting,  etc 67,  607,  549.  86 

(h)  Total  excess  of  expenditures  oa  er  receipts 475,  976,  828.  03 

Less: 

(2)  Excess  of  receipts  over  expenditures: 

(a)  Operations  of  vessels 274,643,529.93 

(3)  Net  excess  of  expenditures  over  receipts,  etc 201,  333,  298. 10 

9.  Point  No.  4. — "  The  disposition  of  any  net  profits,  if  any  such 
there  have  been." 

The  answer  to  this  point  is  shown  in  detail  in  the  ''Statement 
showing  disposition  of  net  proceeds  of  receipts  from  appropriations, 
allotments,  and  other  sources."     (See  Exhibit  B.) 

In  order  that  a  clearer  understanding  may  be  had,  we  believe  a 
few  remarks  relating  to  some  of  the  items  shown  in  this  statement 
are  in  order;  ther(»fore,  we  make  such  remarks  as  they  apply  to  the 
particular  item  of  the  statement: 

General  cash  and  cash  finds  (item  A-J),  S4o, 623, 874.64.— Oi  this 
item,  $17,280,460  is  committed  to  a  specilic  class  of  activities,  leaving 
$28,393,414.64  to  carry  on  current  transactions  of  all  divisions. 

Unexpended  appropriations  and  allotment  funds  (item  A-2), 
$40,778,165.56.— Of  this  sum,  $39,621,441.32  is  available  for  current 
li'ansactions  and  represents  the  residue  of  a  recovery  from  the  War 
L)('})artment.  The  balnace  amounting  to  $1,156,724.24  is  subject 
to  statutory  liinilations  which  will  require  the  return  of  a  part  of  it 
to  the  United  Slates  Ti'easury  surplus  account. 

Accounts  receivable  {item  A-3),  $190,952,618.99. — The  greater  part 
of  this  item,  namely,  $77,348,779.50,  is  represented  by  contracts 
covering  sales  of  vessels.  It  would  seem  quite  clear  that  this  indebt- 
edness, unless  amply  secured  or  due  from  a  debtor  able  to  pay  from 
resources  other  than  shi|)s  purchased,  can  not  be  of  any  greater  value 
than  tile  value  of  the  ship.  This  being  so,  there  will  necessarily  be 
a  very  considerable  shrinkage  in  the  value  of   the  receivable  items 


REPORT  OF  U.  S.  SHIPPING  BOARD.  9 

representing  this  class  of  iiulcljlcdncss.  Wo  sot  forth  a  division 
of  maturities  of  oontracts  covoriiitr  sah>s  of  vossols,  wliicli  extend 
over  a  period  ranging  from  1  to  13  years: 

Past  due $4^  797,  887.  44 

Due  in  1  year 5,  (578,  222. 16 

Due  in  2  to  13  years 49.  822,  886.  02 

Doubtful  (in  recei\  erships) 13,  269*  870. 14 

Others 3,  779^  913.  74 

Total 77,  348,  779.  50 

The  amount  due  from  foreign  Governments  is  $26,599,279.45,  of 
which  the  hirg(>r  part  is  owed  by  France  and  Great  Bi'itain. 

The  amount  due  from  departments  of  tlie  Unitecl  States  Govern- 
ment is  $18, (592, 139. 13;  of  this  sum  $8,579,479.79  is  owed  by  the 
Food  Administration  (now  exthict);  $0,535,708.05  is  owed  by  the 
Navy  Department;  $2,408,312.11  is  owed  by  the  Panama  Canal; 
$1,168,639.18  being  owed  by  other  dejiartments. 

There  are  also  included  in  this  item  $1,362,518.43  which  is  owed 
by  the  American  Red  Cross,  Belgium  Relief  Commission,  and  Young 
Men's  Christian  Association.  Tlie  balance  of  $66,949,902.48  repre- 
sents accoHuts  owed  by  sundry  d(4)t()rs.  The  larger  proportion  of 
this  amount  will  be  collected  through  the  medium  of  settlements  of 
claims  against  the  United  States  Shipping  Board  Emergency 
Fleet  Corporation,  and  thus  no  cash  will  be  obtained. 

Notes  receivable  {item.  A-4),  $75,236,673.28. — The  larger  part  of 
this  item,  namely,  $69,016,010.61,  represents  notes  received  in  lieu 
of  vessels  that  were  sold.  A  similar  condition  exists  in  connection 
with  these  items  as  the  one  referred  to  under  accounts  receivable; 
that  is  to  say,  the  indebtedness  can  not  be  of  any  greater  value  than 
the  value  of  ships,  unless  such  indebtedness  is  amply  secured  or  due 
from  a  debtor  able  to  pay  from  resources  other  than  ships  purchased. 
This  being  so,  there  will  necessarily  be  a  considerable  shrinkage  in 
the  value  of  this  receivable  item.  The  maturities  of  these  notes 
range  over  a  period  of  from  1  to  10  years.  The  division  being  as 
follows : 

Past  due $6,  761, 166.  74 

Due  in  1  year 18,  336,  659.  58 

Due  in  2  to  10  years 43,  918, 184.  29 

Total 69,  016, 010.  61 

The  amount  due  from  foreign  Governments  is  $3,095,396.80,  of 
which  $2,923,985.24  is  owed  by  the  Rei)ul)lic  of  Poland.  The  greater 
part  of  the  balance,  namely,  $3,125,265.87,  is  due  from  shipbuilders. 

United  States  Liberty  and  Kingdom  of  Beh/ium  bonds  {item  A-5), 
$2,604,812.47.— In  this  item  $2,446,187.50  is  represented  by  United 
States  Liberty  bonds  of  $2,634,750  par  value.  Maturity  of  such 
bonds  is  as  follows : 

Maturity  Amount. 

1928 $104,  000.  00 

1938 2,  30(i,  000.  00 

1947 224,  750.  00 

Total 2,  634,  750.  00 

The  amount  of  Kingdom  of  Belgium  bonds  is  $158,624.97  which 
mature  in  1928. 


10  REPORT  OF  U.  S.  SHIPPING  BOARD. 

Siocl's  and  honds  of  other  companies  (item  A-6)  $662,210. — The 
division  of  this  item  is  as  follows: 

Capital  stock  of —  . 

Emergency  Fleet  Street  Railway  of  New  Jersey *-5"'  x"" 

Anacortes  Co 25,  OOP 

Total  capital  stock 275, 000 

Bonds.  Seattle  Construction  &  Dry  Dock  Co 387,  210 

Total 662,210 

Mortgages  (item  A-7),  $6,555,218.38.— This  item  consists  of  mort- 
gages received  in  lieu  of  housing  projects  that  were  sold.  The  maturi- 
ties of  such  mortgages  range  over  a  period  of  5  to  10  years.  We  show 
division  of  such  maturity  below" 

First,  5-year  mortgage $5,  298,  833.  88 

Second,  10-year  mortgage 1.  256,  384.  50 

Total 6,555,218.38 

Certificate  of  indebtedness  (item  A-8),  $21,197.72.— This  item  repre- 
sents certificates  received  from  municipalities  and  corporations  in  lieu 
of  expenditures  on  utilities  in  connection  with  housing  projects. 
Realization  will  probably  be  made  to  the  extent  of  $13,697.72. 

Loans  and  or  advances  (item  A-9),  $105,546 J67. 13.— Oi  the 
$66,606,053.35  item  (a)  there  is  $31,377,599.49  secured  by  mortgages 
given  in  lieu  of  expenditures  on  housing  projects  of  realty  companies. 
This  class  of  loans  are  further  secured  by  capital  stock  of  realty  com- 
panies being  pledged  with  the  United  States  Shipping  Board  Emer- 
gency Fleet  Corporation,  for  the  faithful  performance  of  certain 
operating  agreements.  Also  certificates  of  indebtedness  are  indorsed 
by  realty  companies  to  the  United  States  Shipping  Board  Emergency 
Fleet  Corporation,  as  security  for  moneys  loaned.  The  remaining 
$35,227,453.86  of  item  (a)  represents  mortgages  given  in  lieu  of 
expenditures  in  connection  with  plant  and  vessel  construction. 

The  $15,979,983.92  item  (b)  is  secured  in  part  by  mortgages  given  in 
lieu  of  expenditures  on  housing  projects  of  realty  companies  also  fur- 
ther security  consisting  of  pledged  capital  stock  of  realty  companies 
and  indorsed  certificates  of  indebtedness  as  previously  outlined. 

The  $22,960,729.86  item  (c)  represents  unsecured  loans  consisting 
of  expenditures  in  connection  wnth  plant  and  ship  construction, 
receivers  of  steamship  companies  that  purchased  vessels  of  the  United 
States  wShipping  Board,  and  insurance  syndicates. 

Viewing  this  item  as  a  whole,  there  will  only  be  realized  such  amount 
as  represents  the  after  war  valu(;s  notwithstanding  the  amount  of 
investment  tluring  the  period  of  war.  Furthermore  such  an  amount 
as  is  realized  will  extend  over  a  number  of  years  ranging  from  5  to  10 
or  more  in  number  under  the  present  conditions. 

Agents  account  current  balances  {item  A-10),  $52,609,221 .70.— This 
item  consists  of  (1)  balances  due  from  owners  of  requisitioned  vessels, 
amounting  to  $43,387,531.37;  (2)  balances  of  agents  accounts  in  Bos- 
ton, North  Atlantic  (New  York),  and  Norfolk  districts,  less  amount  of 
cash  (see  Exhibit  B,  item  1-a-l)  in  operator's  trust  funds  of  such 
districts,  amounting  to  $9,221,690.33. 

The  $43,387,531.37  item- due  from  "0^vners  of  requisitioned 
vessels" — is  to  a  large  extent  offset  by  "  charter  hire  payable"  to  such 


REPORT  OF  U.  S.  SHIPPING  BOARD.  11 

owners,  amounting  to  $42,592,825.98,  that  is  included  in  "Deductions 
from  workin*]:  capital."      (See  Exhibit  B,  item  3-a-2-b.) 

The  ultimate  disposition  of  the  S9,221,()9().33  will  tend  to  increase 
the  receipts  from  operations  of  vessels  $240,970, 604. 70  (see  Exhibit  A, 
item  1-c-l a) :  increase  the  receipts  from  sundry  sources  .$264,088.76 
(see  Exhibit  A,  item  l-c-3) ;  increase  the  expeiiditures  on  operations 
of  vessels  $238,273,376.61  (see  Exhibit  A,  item  3-b-l);  increase  the 
accounts  receivable  $17,389,527.29  (see  Exhibit  B,  item  l-a-3); 
increase  the  materials  and  supplies  $140,486.94  (see  Exhibit  B,  item 
1-a-ll-a);  increase  the  custodian  receipts  $28,266.12  (.see  Exhibit  B, 
item  3-a-l-a);  increase  the  liabilities  $5,312,740.93  (see  Exhibit  B, 
item  3-a-2-b).  Tiius  at  such  lime  as  the  "Ap;ents  account  current 
balances"  of  all  districts  are  cleared,  the  realization  of  this  item  would 
increase  the  "Net  working  and  lixed  and  donated  capital"  item  (see 
Exhibit  B,  item  10)  to  the  extent  of  $2,967,316.85. 

Materials  and  supplies  {item  A-11),  SS5, 254,706.63.— The  larger 
part  of  item  (a),  namely,  $28,564,681.42,  represents  materials  for  use 
in  connection  with  vessel  construction  and  repairs.  All  of  item  (6), 
amounting  to  $54,870,127.78,  represents  in  part,  appraisal  values  set 
on  surplus  and  salvage  materials  and  otherwise  actual  expenditures. 
In  order  that  no  misunderstanding  may  exist,  you  are  informed  that 
this  is  book  and  not  in  all  cases  a  physical  inventory  value. 

Deductions  from  worhinq  capital  {item  4),  $91,163,733.67.— You  are 
informed  that  this  item  only  represents  the  acknowledged  and  recorded 
liabilities  of  the  United  States  Shipping  Board  Emergency  Fleet  Cor- 
poration. There  are  claims  relating  to  the  construction  program  and 
other  payable  items  amounting  to  many  millions  of  dollars,  but  they 
are  not  shown  herein  for  the  reason  that  their  presentation  amount  is 
not  always  indication  as  to  their  final  settlement  amount,  therefore  to 
include  them  would  in  our  opinion,  be  misunderstood  and  otherwise 
defeat  the  purposes  of  the  statement  submitted.  Briell}',  the  afore- 
mentioned items  are  as  follows: 

Estimated  construction  program  claims  payable $146,  796,  548.  34 

Awards  payable  to  former  owners,  requisitioned  hulls 11,  309.  962.  77 

Estimated  insurance,  accident,  and  damage  losses  payable 21,  665,  719.  91 

Total 179,  772,  231.  02 

In  our  opinion,  the  rest  of  the  items  with  their  supporting  schedules 
are  clear  within  themselves. 

10.  Pqixt  No.  5. — "  The  amount  of  capital  on  which  the  United 
States  Shipping  Board  now  is  conducting  its  business.'' 

The  answer  to  this  point  is  shown  by  "Net  working  and  fixed  and 
donated  capital."      (See  Exhibit  B,  item  10.) 

11.  Point  No.  6. — "  Tfie  number  of  vessels  at  present  owned  by  the 
Shipping  Board,  giving  material  of  which  each  is  constructed  and  ton- 
nage of  each. \ 

'fhe  answer  to  this  point  is  shown  by  "Statement  of  owned  vessels, 
tugs,  and  barges  available."      (See  schedule  9  of  Exhibit  B.) 

12.  Point  No.  7. — "  The  number  of  vessels,  if  any,  at  present  owned 
in  part  by  the  Shipping  Board,  giving  material  of  which  each  is  con- 
structed and  tonnage." 

The  answer  to  this  point  is  shown  by  "Statement  of  owned  in  part 
vessels,  tugs,  and  barges."     (See  Exhibit  C.) 


12  REPORT  OF  U.  S.  SHIPPING  BOARD. 

13.  Point  No.  8. — "Number  and  description  of  i^esseJs  owned  hy 
the  Shipping  Board  now  in  operation  nnder  its  sote  management,  and 
numher  and  description  under  charter  hy  the  Shipping  Board  in  opera- 
tion under  its  sole  management.'' 

The  answer  to  this  point  is  "None." 

14.  Point  No.  9. — "Number  and  individital  and  aggregate  value 
of  vessels  owned  by  the  Shipping  Board  now  managed  by  it  in  conjunction 
unth  private  interests." 

The  answer  to  this  point  is  shown  by  "Statement  of  owned  vessels 
managed  in  conjunction  with  private  interests."      (See  Exliibit  D.) 

15.  Point  No.  10. — "Numher  of  vessels  owned  by  the  Shipping 
Board  now  chartered  by  it  to  private  interests  and  operated  entirely  by 
private  interests." 

The  answer  to  this  point  is  shown  by  "Statement  of  owned  vessels 
chartered  to  private  interests  and  operated  entirely  by  private 
interests."      (Sec  Exhibit  E.) 

16.  Point  No.  11. — "Number  and  individual  and  aggregate  value 
of  vessels  owned  by  the  Shipping  Board  not  at  present  in  operation, 

?'iving  (a)  name  and  description  and  tonnage  of  each  such  vessel;  {h) 
ength  of  time  it  has  not  been  in  operation;  (c)  reason  why  it  has  not  been 
and  is  not  now  in  operation;  (d)  place  where  each  such  vessel  is  docJced 
or  tied  up;  (e)  expense  of  daily  maintenance  of  each  such  vessel;  if) 
percentage  of  each  vessel's  value  lost  monthly  by  such  idleness;  ig)  esti- 
mated percentage  of  each  such  vessel's  value  lost  monthly  in  depreciation." 

No  attempt  is  made  to  place  a  value  on  the  vessels.  The  limita- 
tions of  the  law,  the  financial  and  business  conditions,  together  witli 
the  wide  variations  in  the  opinions  of  those  who  are  conversant  witli 
this  subject,  preclude  the  possibihty  of  making  an  estimate  of  value 
that  would  be  generally  accepted.  Moreover,  it  is  obviously  unfair 
to  use  as  a  basis  for  the  ascertainment  of  values  of  these  vessels  the 
prices  obtaining  in  the  midst  of  a  world-wide  depression.  Therefore, 
it  was  thought  best  to  omit  any  attempt  to  place  a  valuation  on 
vessels. 

The  answer  to  subsection   (/)   is  not  given  for  the  reasons  that 

(1)  as  previously  stated,  values  are  ambiguous  at  the  present  time; 

(2)  under  existing  conditions  vessels  have  little  or  no  earning  value; 

(3)  before  vessels  are  tied  up  it  is  determined  that  losses  while  in 
operation  would  exceed  expenses  while  vessels  are  not  in  operation. 

In  answer  to  subsection  (g),  we  estimate  that  depreciation  during 
tie-up  exceeds  depreciation  during  operation  by  1^  to  2  pei-^cent. 

With  the  foregoing  exceptions,  our  answer  to  this  point  is  shown 
by  the  following: 

(1)  "Statement  of  owned  vessels  not  under  operations"  (see 
Exhibit  F),  answering  subsections  (a)  and  (d). 

(2)  "  Statement  of  expense  of  daily  maintenance  on  owned  vessels  " 
(see  Exhibit  G),  answcrmg  subsection  (e). 

(3)  "vStatement  showing  length  of  time  owned  vessels  have  not 
been  in  operation  and  reasons  why  they  have  not  been  and  are  not 
in  operation"  (see  Exhibit  11),  answering  subsections  (b)  and  (c). 

17.  Point  No.  12. — "Concise  description  of  the  system  of  account- 
ing by  which  (a)  the  profits  or  losses  of  the  Shipping  Board  are  deter- 
mined, (b)  the  loss  by  depreciation  is  estimated,  (c)  the  individual 
profit  or  loss  on  each  vessel,  in  operation  or  idle,  is  estimated." 


REPORT  OF  U.  S.  SHIPPING  BOARD.  13 

In  our  opinion,  this  point  is  intended  to  apply  to  the  divisions 
having  to  do  with  the  operation  of  vessels.  We  therefore  show  on 
the  ''Accounting  system,  Division  of  Operations"  (see  Exhibit  I), 
an  outline  of  the  accounting  system  of  tiiat  (hvision. 

In  addition  to  the  foregoing,  hooks  of  accounts  are  maintained  by 
the  Transportation  and  Housing  and  ('Oiistruction  Divisions  of  the 
Emergency  Elect  Corporation.  Books  of  accounts  arc  also  main- 
tainecl  by  the  United  States  Shipping  Board  wherein  the  Ship  Sales 
Division  activities  are  recorded.  Furthermore,  a  consolidation  of  all 
division  transactions  is  made  in  the  general  books  of  the  United 
States  Shipping  Board  Emergency  Fleet  Corporation.  From  these 
general  books  monthly  "consolidated  trial  balances"  and  "balance 
sheets"  of  tiie  organization  as  a  whole  are  prepared. 

18.  Point  No.  VS.— "  Copy  of  any  standard  Jorm  of  contract  the 
Shipping  Board  may  have  established." 

In  answer  to  this  point  there  are  attached  hereto  the  following 
exhibits  which  represent  the  difl'erent  forms  of  contracts  rec[uested: 

(a)  Requisition  charter Exhibit  J 

(b)  Requisition  agreement,  tank  steamship Exhibit  K 

(c)  Requisition  charter  for  tank  steamship Exhibit  L 

{d)  Requisition  charter  for  sailing;  vessels Exliil)itM 

(e)  Sailing  vessel  time  charter Exhibit  N 

(/)  Tugboat  managing  and  operating  agreement Exhibit  O 

(g)  Operating  agreement Exhibit  P 

(h)  Operating  agreement Exhibit  Q 

(i)  Managing  agreement Exliibit  R 

(j)  Managing  agreement Ex hibit  S 

(k)  Agency  agreement  for  managing  and  oi)erating  steel  cargo  vessels Exhibit  T 

(l)   Agency  agreement  for  managing  and  operating  vessels Exhibit  U 

19.  Point  No.  14. — "List  oj  all  contracts  with  private  individuals 
,or  corporations  operating  Shipping  Board  vessels  either  by  themselves 

entirety  or  in  conjunction  with  the  Shipping  Board." 

The  answer  to  this  point  is  shown  by  "List  of  managers  and/or 
operators  operating  United  States  Shipping  Board  vessels,  either  by 
themselves  entirely  or  in  conjunction  with  the  United  States  Ship- 
ping Board."     (See  Exhibit  V.) 

20.  Point  No.  15.- — "List  oi  contracts  now  ready  for  conclusion 
with  private  interests  for  the  operation  of  Shipping  Board  vessels,  and 
list  of  tentative  contracts  now  under  consideration  jor  juture  conclu- 
sion." 

The  answer  to  this  point  is  "None." 

21.  Point  No.  16. — "Number  of  persons  now  employed  by  the 
Shipping  Board  (a)  on  shore  and  (6)  afloat." 

The  number  of  persons  employed  by  the  United  States  Shipping 
Board  and  United  States  Shipping  Board  Emergency  Fleet  Corpora- 
tion are  (a)  on  shore  8,544,  (b)  afloat  388  (exclusive  of  crews  of 
approximately  43,000  persons,  who  are  employed  by  operating 
agents) . 

Respectfully, 

W.  S.  Benson,  Chairm,an. 
Submitted. 

A.  TwEEDALE,  General  Comptroller, 


14 


BEPOBT  OF   U.   S.   SHIPPING  BOARD, 


Exhibit  A. 


UNITED   STATES    SHIPPING    BOARD   AND   UNITED    STATES    SHIPPING   BOARD   EMERGENCY 

FLEET   CORPORATION. 

Statement  of  gross  and  net  proceeds  of  receipts  from  appropriations,  allotments,  and  other 
sources  from  inception  to  Feb.  28,  1921. 

Item 
No. 

1.  Gross  receipts: 

(n)  From  appropriations— 

(1)  Salaries  and  expenses $2,675,486.00 

(2)  Increase  of  compensation 4.633.  71 

(3)  I""mer{;encv  shipping  fund 3,  203,  201 ,  000. 00 

(4)  Sale  of  capital  slock  (permanent  fund ) 50,  OOP,  OOP.  00 

(5)  Total  receipts  from  ai)propriations $3, 255, 881, 119. 71 

(6)  From  allotments  hv  PrR;ii1ent  of  United  States — 

(1)  National  security  and  defense  funds 29,512,426.27 

(c)  From  other  sources — 

(1)  J^rom  operations  of  vessels— 

(a)  Voyage  and  cliartcr  revenue  and  revenues  inci- 
dental to  vessel  operations 1, 051, 893, 910. 04 

(2)  From  salej— 

(a)  Vessels  (schedule  1 ) $322,  829, 695. 68 

(6)  Surnlus  hulls  (schedule  2) 5, 979,  443. 62 

(f)  Cargoes  of  requisitioned  Dutch 

vessels 4,830,180.97 

(rf)  Housi!ig  projects 9,620,490.00 

(e)  Materials 33,279,957.71 

(/)  Total  receipts  from  sales 376,539,767.98 

(3)  From  sundry  sources 48.  577,  865. 39 

(4)  Total  receipts  from  other  sources 1,477,011,543.41 

2.  Tot  al  gross  receipts 4, 762, 405, 089. 39 

3.  Expenditures  directly  involved  in  gross  receipts  from  appropriations, 

allotments,  and  other  sources; 
(o)  On  appropriation  and  allotment  funds  covered  into  United 

States  Treasury  on  account  of  statutory  limitations 4,016,026.85 

(&)  On  operation  of  vessels — 

(1)  Voyage  expenses,  maintenance,  charter  hire,  etc >  777,  250,380. 11 

(c)  On  sales— 

(1)  Vessels  (schedule  3) .«371,o00,399.  26 

(2)  Surplus  hulls  (schedule  2) 37,380,7)2.67 

(3)  Housing  projects 11 ,  644,  303.  28 

(4)  Materials 26,317,820.39 

(5)  Total  expenditures  directly  involved  in  sales 446, 843, 235.  60 

((?>  On  sundry  transactions 22, 966, 837.  05 

4.  Total  expenditures  directly  involved  in  gross  receipts  from  appropriations,  allot- 

ments, and  other  sources 1, 251, 070,  479. 61 

5.  Gross  proceeds  from  appropriations,  allotments,  and  other  sources 3,  511, 328, 609.  78 

6.  Expenditures  indirectly  involved  in  gross  receipts  from  appropriations,  allotments, 

and  other  sources: 
(o)  On  contracts  for  and  /  or  construction  of  projects  suspended  and  /  or  canceled — 

(1)  Vessels — 

(a)  Contracts  for  vessels  canceled . .  $S5, 437, 404.  36 
(6)  Construction  of  vessels  canceled 

and/or  suspended  (schedule  4)    62,  784,  944. 07 

(c)  Total  expenditures  on  con- 
tracts for  and  construc- 
tion of  vessels  canceled 
and/or  suspended 98, 222, 348. 43 

(2)  Materials,  machinery,  plant,  and  prop- 

erty      18,399,546.92 

(3)  Total  expenditures  on  contracts 

for  and/or  construction  of  pro- 
jects suspended  and/or  canceled 116, 621, 895. 35 

(6)  On  shrinkage  in  api)raisal  value  versus  expenditures — 

(1)  Surplus  hulls,  not  sold  (schedule  5)....  Jl",  622,  ,'i35.  01 

(2)  Materials,  plants,  and  property 81,284,816.82 

(3)  Total  shrinkage  in  apnraisal  value  versus  ex- 

nenditures '. 128, 907, 351.  83 

(c)  On  vessels  released  (schedule  6) "11,607,702.89 

Id)  On  vessels  not  taken  over 15,  581.  24 

(f.)  On  vessels  lost  (see  note  1 )  (schedule  7) 76,  912,  833. 63 

(/)  On  salaries,  recruiting,  and  other  expenses  (see  note  2) 93,  202, 996.  96 

7.  Total  expenditures  indircctlv  involved  in  gross  receipts  from  appropriations, 

allotments,  and  other  sources 427, 268. 361. 90 

8.  Net  proceeds  from  appropriations,  allotments,  and  other  sources 3,084,060,247.88 

Note  1. — Includes  $13,724,083.  32  for  vessels  lost  while  under  operation. 

Note  2. — Includes  815,312,834.98  for  losses  and  damages  to  cargoes,  etc.,  while  under  operation. 

•  No  allowances  for  depreciation,  insurance,  interest,  and  lost  vessels. 
>  Includes  expenses  incidental  to  rciiuisitioning  of  Dutch  vessels. 


REPORT   OF    U.   S.    SHIPPING   BOARD.  15 

Exhibit  B. 

united  states  shipping  board  and  united  states  shipping  board  emergency 

fleet  corporation. 

Statement  showing  disposition  of  net  proceeds  of  receipts  from  appropriations,  allotments, 
and  other  sources  from  inception  to  Feb.  28,  1921. 

Item 
No. 

1.  Working  capital: 
(a)  Invested  ill- 
CD  ( Joupral  cash  and  cash  funds $45, 023, 874. 64 

(2)  I'lioxpondod  appropriations  and  allotment  funds iu,  778, 10.5.  .56 

(3)  A(!counl s riM vivable 190, 952, 618. 99 

(4)  Not  OS  r.'.(-i  vable 75, 2.36, 073.  28 

(5)  ITnited  Stalos  Liberty  and  Kingdom  of  Belgium  bonds..        2,f>04,S12.47 

(0)  Stock.sand  bonds  of  other  companies 002.210.00 

(71  Mortgages 6 , 5.55, 218. 38 

(8)  (Vrtificates  of  indebtedness 21, 197. 72 

(9)  Loans  and/or  advances — 

(o)  Secured 100, 000, 0.53. 35 

(b)  Secured  in  part 15,979,983.92 

(c)  Unsecured 22,900,729.80 


((i)  Total  loans  and/or  advances 105,540,707.13 

(10)  Agents' accotmt  current  lialances 52,609,221.70 

(11)  Materials  and  supplies— 

(a)  Current 30,384,578.85 

(6)  Surplus  and  salvage — 

(1)  Hulls,    ap- 

praisal value 
(schedule  5 
of  Exhibit 
A) $10,137,782.83 

(2)  Materials....    44, 732, .344. 95 

(3)  Total  surplus  and  salvage. .      54,870,127.78 


(r)  Total  materials  and  .supplies 85,254,706.63 

(12)  Construction  in  progress— 

(a)  Housing 85,839.24 

(6)  Drv  docks  and  marine  railways 6,765,372.85 

(c)  Machinery ." 6,818,5.36.42 

(d)  Vessels  (schedule  8) 133, 513, 259. 55 

(e)  Total  construction  in  progress 147,183,008.06 

2.  Total  working  capital 1753, 028, 474. 56 

3.  Deductions  from  working  capital: 

(a)  Items  for  which  liable — 

(1)  Custodian  receipts — 

(a)  Unclaimed  wages 1 ,  007, 060. 35 

(6)  Payments  on  canceled  sales,  await- 
ing disposition 4,711, 526. 72 

(c)  Deposits 2,472,724.02 

(d)  Total  custodian  receipts  for  which  liable 8,191,311.09  . 

(2)  Liabilities— 

(a)  Vouchers  payable . .  $18,720,773.84 
(6)  Accoimts  and  chart- 
er hire  payable 61 ,  747, 648. 74 

(c)  Mortgages  payable. .      2, 504, 000. 00 

((f)  Total  liabilities 82,973,422.58 

4.  Total  deductions  from  working  capital 91 ,  163, 733. 67 

5.  Net  working  capital 661,864,740.89 

6.  FLxed  and  donated  capital: 

(o)  Invested  in — 

(1)  Furniture,  fixtures,  automobiles,  etc 2,12.5,340.87 

(2)  Land  and  buildings 14, 240, 763. 41 

(3)  Transportation  facilities 9,193,079.98 

(4)  Plant  and  property 138.992,817.95 

(5)  Dry  docks  and  marine  railways 2,171, 075. 29 

(0)  Fuel  oil  stations 556,913.24 

(7)  Vessels  (schedule  9) 2,254,908,310.25 

7.  Total  fLxed  and  donated  capital 2, 422, 195, 506. 99 

8.  Deductions  from  fixed  and  donated  capital 

9.  Net  fixed  and  donated  capital 2,422,195,506.99 

10.  Net  working  and  fixed  and  donated  capital 3, 084, 060, 247. 88 


16 


REPOET   OF   U,    S.    SHIPPIXG   BOARD. 


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22  EEPORT   OF    U.    S.    SHIPPING  BOARD. 

Exhibit  I. 

ACCOUNTING    SYSTEM,    DIVISION    OF    OPERATIONS. 

1.  In  this  outlini'  mana£;in<4  agents,  operators,  or  managers  will  be  referred  to  as 
a.ufents  and  the  United  States  Shipping  Board  Emergency  Fleet  Corporation  as  the 
corporation. 

2.  A  separate  set  of  books  are  maintained  by  all  agents  of  the  corporation,  in  which 
are  recorded  all  accounts  receivable,  accounts  payable,  expense  accounts,  revenue 
accounts,  and  any  other  accounts  necessary  to  reflect  all  transactions  in  connection 
\vith  the  operation  of  the  corporation's  vessels! 

;5.  The  agents  also  kee])  a  separate  trust  fund  out  of  which  all  disbursements  on 
account  of  vessels  operated  for  the  corporation  are  paid  and  to  which  all  remittances 
received  on  account  of  collections  of  revenue  and  other  receipts  are  deposited. 

4.  Trial  balances  and  supporting  schedules  are  submitted  monthly  by  the  agents 
to  the  cori)oration.  A  daily  statement  of  trust  fund  cash  is  also  submitted  to  the 
treasurer  of  the  corporation,  so  that  he  is  at  all  times  cognizant  of  the  financial  con- 
dition of  the  agents.  The  trust  fund  is  subject  to  the  check  of  the  treasurer  of  the 
corporation  as  well  as  the  agent. 

5.  Sepaiate  accounts  are  maintained  for  the  operating  expenses  and  revenues  of 
each  voyage  of  each  vessel  under  operation  by  the  agent. 

6.  All  expenses  incurred  and  revenue  earned  by  the  agent  for  the  corporation  are 
audited  at  the  offices  of  the  agents  by  the  corporation  auditors.  Audits  of  disburse- 
ments incurred  and  receipts  earned  in  Europe  is  done  by  the  general  comptroller's 
auditing  staff  at  London,  who  are  familiar  with  local  conditions  and  practices.  After 
these  accounts  are  audited  and  found  to  be  in  order,  the  agents  close  out  from  their 
books  the  expenses  and  revenues  of  each  vessel  and  voyage  to  the  corporation.  These 
accounts  when  submitted  are  supported  with  original  documents  covering  disburse- 
ments and  receipts  and  are  taken  upon  the  books  of  the  corporation. 

7.  From  this  it  can  be  seen  that  the  books  of  the  agents  are  designed  to  function  as 
purely  operating  records,  providing  only  for  the  necessary  clearing  accounts  in  which 
to  record  transactions  of  the  corporation  until  transferred  to  the  corporation,  where  the 
final  results  are  shown.  Books  and  records  of  the  agents  are  the  property  of  the  cor- 
poration, who  may,  at  any  time  take  same  for  audit  or  disposition. 

8.  All  dealings  and  transactions  having  reference  to  accounting  features  with  agents 
are  carried  on  through  the  general  comi)troller's  representative  in  the  district,  the 
district  comptroller,  who  audits  and  settles  accounts  with  the  agents. 

9.  All  district  olfices  of  the  corporation  keep  a  separate  set  of  books  and  records  in 
which  are  recorded  accounts  receivable,  accounts  payable,  cash,  expense  accounts, 
revenue  accounts,  and  other  accounts  necessary  to  reflect  the  transactions  of  the  cor- 
poration as  carried  on  by  the  districts. 

10.  All  disbursements  incurred  and  revenue  received  are  closed  out  by  the  districts 
to  the  Washington  office,  where  the  final  results  are  recorded  and  shown  on  the  general 
books. 

1 1.  Monthly  reconciliations  are  prepared  in  the  district  offices  reflecting  the  accounts 
of  agents  kept  on  the  books  of  the  corporation  and  the  accounts  of  the  corporation  kept 
on  the  books  of  the  agents.  The  reconciliations,  together  with  the  reports  submitted 
by  the  agents,  enable  the  corporation  to  know  the  financial  status  at  all  times  of  the 
agents  in  so  far  as  it  affects  the  corporation. 

12.  From  the  foregoing,  it  is  evident  that  all  transactions  of  the  agents  and  districts 
and  activities  of  the  Division  of  Operations  are  finally  reflected  on  the  general  books 
of  the  corporation  at  Washington. 

13.  The  general  books  of  the  Division  of  Operations  carry  all  assets  of  the  Division 
of  Operations,  properly  classifled  (except  the  costs  of  ships,  which  are  recorded  on 
the  books  of  Division  of  Construction  of  the  corporation  and  the  United  States  Shipping 
Board);  the  general  expense  of  the  Division  of  Operations,  which  is  made  up  of  the 
expenses  for  salaries,  olfice  supplies,  and  other  atlniinistrative  and  overhead  chargers, 
segregated  by  departments  of  the  Division  of  0])erations;  the  exjienses  and  levenues 
of  each  vessel  and  voyage;  liability  accounts,  reserve  accounts,  and  other  accounts 
necessary  to  properly  reflect  the  activities  of  the  fleet  and  the  Division  of  Ojjerations. 

14.  Separate  accounts  are  maintained  of  o])erating  revenues  and  expenses  showing 
the  gross  revenue  and  gross  expenses  of  each  voyage  or  lay-up  period  of  the  various 
vessels  in  which  th(^  corporation  has  been  interested,  from  which  the  net  profit  or  loss 
of  each  vessel  or  voyage  is  determined. 

15.  The  vessels  and  voyages  are  broken  down  by  trades  and  tonnage,  and  the  gross 
revenue   and  gross  expenses  segregated  according  to  their  nature,  showing  freight 


REPORT   OF    U.    S.    SHIPPTNO   BOATlD.  SS 

revenue,  passonger  revenue,  cost  of  wacjes,  cost  of  fuel,  food,  maintanenoe,  insurance, 
depreciation,  (>tc. 

](J.  I)(>j)rccia1ioii  at  llic  iircscnt  time  is  a'-cruod  on  all  owned  vessels  at  the  arbitrary 
rale  of  10  jxt  cciil  jxt  annum  on  a  valuation  of  $.!()0  per  dead-weight  ton  for  steel 
vessels  and  I2i  jx-r  cent  per  aiuium  on  a  valuation  of  $12')  per  dead-weight  ton  for 
wooden  vessels  Depreciation  is  being  charged  against  eacli  vessel  and  voyage  at  the 
prescribed  rat"  for  tlie  lunnlx^r  of  days  that  is  consumed  on  a  particular  voyage;  thus 
results  are  reflectt'd  sliowing  the  net  ])rofit  or  loss  of  each  owned  vessel  and  voyage 
before  and  after  depreciation  is  charged. 

17.  The  corj)orafion  carries  its  own  marine,  collect  freight,  cargo  insurance,  bo  that 
no  payments  are  made  to  outside  underwriters.  In  this  manner  considerable  saving 
has  been  effected.  Each  ves.sel  and  voyage  is  charged  with  insurance  on  an  arbitrary 
basis,  wliich  is  con«ifl(>rat)ly  less  tlian  woulil  b(!  charg(Ml  by  outside  conij)anie8. 
Against  Ihe  reserve  thus  cr(>:iled  is  charged  actual  marine  damage  or  lo.ss. 

IS.  A  balance  sheet  and  ]);o[it  and  loss  sheet  is  pre[)ared  by  consolidating  monthly 
trial  balances  submitted  by  agents,  the  districts,  and  the  balance  as  reflected  on  the 
general  books.  This  statement  reflects  as  closely  as  possible  the  financial  condition 
of  the  Division  of  Operations. 

19.  In  the  ])re))aration  of  a  profit  and  loss  statement  of  the  Division  of  Operations 
as  at  any  stated  fiscal  period,  oidy  the  revenue  and  expenses  on  voyages  completed 
to  the  date  of  the  statement  should  lie  includ(>d.  Expenses  or  revenue  on  uncom- 
pleted voyag(\s  would  be  shown  as  deferred  items.  The  expenses  and  revenue  on 
voyages  begun  duriu'i  the  period,  but  not  (inislied  until  a  subsetpient  period,  would  be 
included  in  a  subscM)uent  profit  and  loss  statement.  This  procedure  is  necessary  in 
order  to  obtain  a  projier  reflection  of  results  of  com])leted  operations. 

20.  Profit  and  loss  statements  for  voyages  terminating  prior  to  a  specified  date  can 
not  be  ])repared  for  several  months  after  the  completion  of  the  voyages,  due  to  the 
long  delay  entailed  in  securing  accountings  for  disbursements  and  revenue  at  foreign 
ports. 


Exhibit  J. 
[U.  S.  S.  B.  Charter  Form  No.  2.] 

UNITED  STATES  OF  AMERICA. 
Requisition  Chart. 


Code  words: 

Requisiton  charter=Retra. 

Time  form=Merof. 

Bare  boat  form=Erab. 

Name  of  steamship, . 

Type  of  steamship,  -. 

D.  W.  tonnage, . 

Gross  tonnage, . 

Passenger  capacity, . 

Knots  per  hour. 


Date  on  which  vessel  entered  into  pay.  — — — . 

This  requisition  chatter  made  and  concluded  upon  in  the  Distri(  t  of  Columbia  the 
day  of ,  1917.  between of of ,  owner  of  the  good  Ameri- 
can   screw  steamship of of tons  gross  re  ister  and tons 

net  register,  built  in ,  having  engines  of nominal  horsepower,  provided 

with  proper  ceitificate  for  hull  and  machinery,  and  classed at of  about 

cubic  feet  cajjacity  and tons  dead -weight  capacity,  summer  freeboard 

inclusive  of  permanent  bunkers,  capable  of  makin'/  an  average  voyage  speed  when 

loaded  of knots  an  hour,  under  ordinary  conditions,  on  a  consumption  of  about 

tons  of  coal,  or  about barrels  of  oil  per  24  hours;  and  the  United  States 

of  Ameiica,  through  the  United  States  Shipping  Board — 

Witne.sseth: 

Wheieas,  by  requisition  order  dated ,  1917,  pursuant  to  the  urgent  deficiency 

act  15  .Tune.  1917,  and  the  President's  Executive  order  11  July.  1917.  the  United  States 
has  requisitionecl  the  \ise  of  tlie  steamship .  and  the  steamshii)  has  been  deliv- 
ered into  jio.^session  of  the  United  States  pursuant  to  the  re(|uisition;  and 

Whereas,  it  isdesited  by  the  United  States  and  by  the  owner  to  fix  the  compensation 
(hereinafter  called  hire^  which  the  United  States  shall  ])ay  to  the  owner  for  use  of  the 
steamship  so  recpiisitioned,  and  to  define  by  agreement  the  rights  and  duties  of  the 


24  REPOET  OF  U.  S.  SHIPPING  BOARD. 

Inited  States  and  of  the  o^ner  with  resper-t  to  the  operation  of  the  vessel  under  the 
requisition,  and  with  respect  to  other  matters  in  ronnertion  therewith; 

Now,  therefore,  it  is  a<;reed  as  follows- 

First.  The  terms  and  conditions  under  whirh  the  vessel  is  to  be  operated  shall  be 
those  contained  in  the  "  lime  form  "  hereto  annexed:  Provukd,  however.  That  at  the 
time  of  the  reiiuisition  or  at  any  time  thereafter,  on  five  days'  written  notice,  the 
United  States  may  operate  the  vessel  under  the  terms  and  conditions  contained  in 
the  '  •  bare  boat  form ' '  hereto  annexed,  such  operation  to  begin  when  the  steamship  is  in 
a  United  States  ])ort. 

Second.  In  con.-jideration  of  the  compensation  provided  and  the  other  obligations 
assumed  by  the  United  States  hereunder,  the  owner  accepts  this  requisition  charter 
in  full  satisfaction  of  anv  and  all  claims  he  has  or  may  have  against  the  United  States 
arising  out  of  the  requisition  and  accepts  the  compensation  herein  provided  for  as 
the  just  compen-sation  required  by  law:  Provided,  hoirever,  That  the  acceptance  of 
this  requisition  charter  shall  be  without  prejudice  to  the  claim,  if  any.  the  owner 
may  have  against  the  United  States  arising  out  of  recoveries  against  the  owner  by  third 
parties  on  the  vessel's  commitments. 

Third.  Upon  gi\-ing  five  days'  written  notice  to  the  owner  the  United  States  may  at 
any  time,  when  the  vessel  is  in  a  United  St.ites  port,  cancel  this  requisition  charter 
without  prejudice  to  the  accrued  rights  of  either  party. 

Witness  to  the  signature  of — ,  Owner. 

-.  By . 

Witness  to  the  signature  of —  The  United  States  Shipping  Board, 

1.  By . 

Time  Form. 

Whereas  the  United  States  has  determined  to  deliver  possession  of  the  vessel  to  the 
owner  to  be  operated  by  the  owner  for  the  United  States; 
Now,  therefore,  it  is  agreed  as  follows: 

1.  Period  of  service — Ves.sel  to  be  completely  equipped  and  fit — Making  good  defects. — 
The  steamship  shall  remain  in  the  service  of  the  United  States  imder  the  requisition 
order  to  be  employed  as  and  where  the  United  States  may  from  time  to  time  determine 
and  for  such  period  of  time  as  the  United  States  may  determine,  but  such  i)eriod  shall 
not  extend  beyond  the  first  arrival  of  the  steamship  in  an  American  port  six  months 
after  peace  is  declared  unless  she  shall  be  required  for  Government  purposes.  The 
vessel,  when  placed  at  the  disposal  of  the  United  States,  as  directed  by  it,  shall  be  or 
shall  forth\vith  be  made  by  and  at  the  expense  of  the  owner  tight,  staunch,  strong,  and 
well  and  sufficiently  tackled,  appareled,  furnished,  outfitted,  and  equipped,  and  in 
every  respect  seaworthy  and  in  good  running  order  and  condition ;  and  shall  be  fit  for 
the  service  in  which  she  has  usually  been  employed,  having  on  her  delivery  United 
States  inspection  certificate  that  she  has  met  all  requirements  to  fit  her  for  the  trade 
in  which  she  is  employed  at  the  time  of  the  requisition,  except  that  no  such  certificate 
shall  be  required  if  she  be  a  foreign-built  vessel  not  at  present  subject  to  the  United 
States  steamboat-ins])ection  laws  as  provided  in  the  Panama  i'anal  act,  as  amended 
August  18,  1914;  and  ha\ing  a  full  complement  including  the  master,  officers,  and 
crew,  for  a  vessel  of  her  tonnage.  Any  deficiency  in  these  respects  must  be  remedied 
fortlnvith  by  and  at  the  expense  of  the  owner;  and  any  time  lost  in  remedjdng  any 
such  deficiency  is  not  to  be  paid  for  by  the  United  States. 

2.  Operation  of  vessel,  xvages,  etc. — Special  equipment — Complement  of  vessel. — The 
owner  shall  operate  the  vessel  for  the  United  States,  shall  provide  and  pay  for  all 
provisions,  wages,  bonuses,  and  consular  shipjsing  and  discharging  fees  of  the  master, 
officers,  and  crew,  and  shall  pro\'ide  and  pay  for  all  cabin,  deck,  engine  room,  and 
other  necessary  stores,  and  hall  maintain  the  steamship  in  a  thoroughly  efficient  state 
in  hull  and  machinery,  tackle,  apparel,  furniture,  and  equipment  during  the  service. 
If  the  service  recpiires  any  special  equipment  in  addition  to  that  required  for  the  ves- 
sel's pre\'ious  usual  service,  such  equipment 'shall  be  provided  and  paid  for  by  the 
United  States.  The  ordinary  crew  as  required  by  law  to  operate  the  vessel  overseas 
and  in  trans-Atlantic  ser\'ice  shall  be  considered  a  full  comjilement,  and  any  extra 
men,  such  as  wireless  operators,  armed  guards  or  others,  not  recjuired  by  law  for  ordi- 
nary merchant  overseas  and  trans-Atlantic  service,  shall  be  paid  for  by  the  United 
States.  The  owner  shall,  however,  provide  proper  subsistence  for  such  extra  men  at 
reasonable  rates  to  be  fixed  by  the  United  States. 

3.  Status  of  vessel.— The  vessel,  while  being  so  operated  by  the  owner,  shall  not  have 
the  status  of  a  public  ship,  and  shall  be  subject  to  all  laws  and  regulations  governing 
merchant  vessels,  and  the  owner  shall  take  all  proper  steps  to  prevent  any  suit  or  proc- 
ess from  interfering  with  her  service. 


REPORT  OF  U.  S.  SHU'riNO  BOARD.  25 

When  a  public  ship. — When,  liown'er,  the  rcquisitiont'd  vcsael  is  enf^'a^od  in  the 
service  of  the  War  or  Navy  Department,  the  vesHel  .shall  have  the  HtaluH  (jf  a  itublic 
ship,  and  alth()u<r]i  tlie  owner  wliall  contitiue  to  provide  and  pay  for  all  the  items 
stated  lo  he  providefl  and  |)ai(l  for  by  ihe  owner  while  o|)eralinj,'  the  vessel  as  provided 
in  clause  2,  the  master,  olhcers,  and  cnnv  shall  hccome  the  iiiiinediat<'  employees  and 
agents  of  the  United  States,  with  all  the  riglits  and  diitii's  of  such,  (he  vessel  pas^sing 
completely  into  the  possession  and  the  master,  olliccrs.  and  crew  aljsolutely  under 
the  control  of  the  United  States.  The  owner,  master,  oihcers,  and  crew  shall  b6 
notified  of  the  commencement  and  termination  of  (he  vessel's  employment  in  the 
service  of  the  War  or  Navy  Department,  and  a  proper  notation  shall  be  made  on  the 
ship's  articles  i)rior  to  the  signing  thereof,  showing  that  the  master,  officers,  and  (Tew 
have  entered  into  the  service  of  the  United  States.  Monthly,  or  as  soon  as  possible 
after  the  termination  in  a  United  Slates  ])ort  of  any  voyage  in  the  service  of  the  War 
or  Navy  Dejiartment,  the  owner  shall  furnish  the  United  States  as  a  voucher  a  state- 
ment by  tlie  United  States  shipping  conirnissioiu'r  which  shall  certify  the  dates  and 
amounts  of  the  }>ayment  of  the  wages  and  bonuses  of  the  master,  oflicers,  and  crew  as 
the  same  may  api)ear  on  the  completed  articles. 

4.  NalionaUlij  of  crew. — So  far  as  practicable,  every  member  of  the  crew  shall  be  an 
American  citizen,  citizens  and  subjects  of  enemy  or  ally  of  enemy  nations  always 
excluded.  Full  list  of  crew,  with  their  ratings  and  nationalities,  shall,  if  requireti, 
be  produced  to  (lie  United  States  at  the  time  of  delivery  of  the  vessel  or  on  the  entry 
into  the  ])ay  of  th(»  vessel  of  such  member  or  nuMnberi^  of  the  crew. 

5.  United  Stales  will  provide  fael,  etc. — The  United  States  shall  proWde  and  pay 
for  all  coals  or  other  fuel,  fresh  water,  port  charges,  i)ilotages,  agencies,  commissions, 
brokerage,  wharfage,  and  consular  charges  (except  those  pertaining  to  the  master, 
officers,  and  such  part  of  the  crew  as  the  owner  is  res})onsible  for  under  clause  2),  and 
all  other  usual  expenses  paid  by  charterer  under  so-called  "Government  form  time 
charter,"  except  as  otherwise  provided.  The  United  States  shall  reimburse  the  owner 
for  all  income  or  excess  prohts  taxes  in  foreign  countries  ui)on  income  or  prohts  derived 
from  the  vessel  and  accruing  to  the  United  States. 

(i.  Dunnage. — The  United  States  shall  ])ro\ide  the  necessary  dunnage  and  shifting 
boards,  but  the  owner  shall  allow  the  United  States  the  use  of  dunnage  and  shifting 
boards  already  on  board  the  steanishi]),  the  United  States  to  have  the  ])ri\'ilege  of 
using  <he  shifting  boards  for  dunnage,  but  making  good  any  damage  thereto. 

7.  Fuel  on  delivery  and  redeliver}/. — The  ITnited  States  shall  accei)t  and  pay  for  all 
fuel  on  board  at  the  time  of  delivery  under  the  requisition  order,  and  the  owner  shall 
on  the  redelivery  of  the  steamship  ]iay  for  all  fuel  left  on  board,  at  the  ciirrent  market 
price  at  the  respective  ports  of  delivery  and  redelivery.  A  statement  of  such  fuel 
shall  be  furnished  forthwith  by  the  owner  to  the  United  States  for  verification. 

8.  Payment  of  hire. — The  United  States  shall  pay  for  the  use  of  the  steamship  at 
the  monthly  rate  which  shall  from  time;  to  time  i)e  estalilished  by  the  United  States 
Shipping  Board  for  a  vessel  of  her  description,  commencing  on  and  from  the  hour  that 
she  shall  be  ready  for  delivery  under  the  requisition  (and  is  so  rej)orted  to  the  United 
States)  and  at  and  after  the  same  rate  for  any  part  of  a  month,  hire  to  continue  until 
the  hour  at  which  the  vessel  may  be  ready  for  redelivery  at  a  United  States  port 
(and  is  so  reported  to  the  owner). 

If  the  United  States  Shijjping  Board  shall  hereafter  lower  the  rate  of  hire  from  that 
in  effect  on  the  date  of  the  requisition,  the  owner  shall  have  the  option  of  canceling 
this  requisition  charter  as  of  the  date  of  such  reduction,  without  prejudice  to  the 
rights  of  either  party. 

Payment  of  hire  shall  be  made  in  the  District  of  Columliia.  in  cash,  monthly,  as 
earned,  at  the  end  of  each  calendar  month.  If  the  vessel  is  lost,  hire  shall  be  paid  up 
to  and  including  the  date  of  her  loss  (if  the  tim(^  of  her  loss  be  uncertain,  then  Tip  to 
and  including  the  date  she  is  last  heard  from). 

Dead-weight  tonnage. — Dead-weight  tonnage  shall  be  based  on  summer  freeboard 
assigned  or  to  be  assigned  with  reference  to  North  Atlantic  serAice,  according  to  the 
standards  of  any  recognized  classification  socic^ty;  ])roiK'r  evidence  of  siich  assignment, 
together  with,  a  true  copy  of  the  dead  weight  sca.l(>  of  the  A-essel,  shall,  if  ])ossible,  be 
furnished  by  the  owner.  Until  reasonable  opjxirt  unity  has  been  afforded  the  owner 
to  procure  such  assignment,  hire  shall  be  ])aid  on  dead-weight  toniuige  as  certified  by 
the  owner;  any  excess  or  deficiency  in  such  hire  to  be  adjusted  upon  subsequent 
determination  of  summer  freeboard. 

9.  Classification. — A  certified  statement  from  a  recognized  cla.ssification  society  that 
the  vessel  has  been  classed  as  fit  for  her  i)re\aous  usual  service  shall,  if  obtainable  at  a 
reasonable  cost,  be  furnished  by  the  owner.  Any  alterations  which  are  nuide  to  obtain 
a  class  for  North  Atlantic  ser\ace  which  are  not  rcfpiired  to  obtain  a  class  for  the  vessel's 
previous  usual  service  shall  be  made  by  and  at  the  expense  of  the  United  States,  but 


26  EEPORT  OF  U.  S.  SHIPPING  BOARD. 

there  shall  be  no  deduction  from  the  hire  for  time  consumed  in  making  such  altera- 
tions. So  far  as  the  exigencies  of  the  service  will  permit,  the  owner  shall  do  all  things 
necessary  to  maintain  the  vessel's  class. 

10.  Increase  in  crew's  wages  and  bonuses. — In  addition  to  the  aforesaid  compensa- 
tion for  use  of  the  steamship,  the  United  States  agrees  to  reimburse  the  owner  for  any 
proper  increa.ses  in  wages  and  bonuses  over  the  standard  prevailing  August  1,  1917, 
for  master,  officers,  and  crew,  the  owner  to  produce  satisfactory  evidence  of  such 
increases  in  wages  or  bonuses. 

11.  Inventory  of  outfit. — The  United  States  shall  have  the  use  of  all  outfit,  equip- 
ment, and  appliances  "without  extra  cost,  and  the  same  or  their  substantial  equivalent 
shall  be  returned  to  the  owner  when  the  vessel  is  redelivered  in  the  same  or  as  good  order 
and  condition  as  when  received,  ordinary  wear  and  tear  and  damage  due  to  the  opera- 
tion of  risks  assumed  by  the  owner  excepted.  An  inventory  shall  be  furnished 
forthwith  by  the  owner  to  the  United  States  for  verification. 

12.  Insurance  of  vessel. — The  owner  shall  assume  the  marine  ri.'^ks,  including  colli- 
sion liabilities  (excepting  losses  and  liabilities  arising  from  war  risksV  The  United 
States  shall  assume  V/ar  risks  (including  collision  liabilities),  as  exr-Iuded  by  the  follow- 
ing clause  in  the  American  hull  policy,  1910  form:  "'Warranted  free  of  capture,  seiz- 
ure, arrest,  restraint,  or  detainment,  or  the  (;onsequen''es  thereof,  or  of  any  attempt 
thereat  (piracy  excepted^  and  also  from  all  consequences  of  hostilities  or  warlike 
o])Hrations,  whether  before  or  after  the  declaration  of  war." 

When,  however,  the  requisitioned  vessel  is  used  upon  voyages  different  from  those 
from  which  she  has  been  taken  and  for  which  she  was  intended,  and  by  reason  thereof 
the  owner  is  compelled  to  pay  an  excessive  ])reniium  in  the  new  service  in  which 
she  is  engaged  as  compared  with  other  vessels  in  such  serATce  of  approximately  the 
same  age,  class,  and  value,  the  facts  may  be  shown  to  the  United  States  Shipping 
Board,  and  if  the  fa<'ts  are  so  found,  the  United  States  will  pay  the  excess  premium, 
based  upon  value  not  in  excess  of  that  on  which  the  vessel  has  heretofore  usually  been 
insured.  The  value  thus  insured  shall  not  be  deemed  in  any  way  indicative  of  the 
just  compensation  to  be  paid  in  case  of  loss  or  damage  due  to  the  operation  of  risks 
assumed  by  the  T'nited  States. 

The  United  States  also  shall  pay  additional  prem.ium  (based  upon  value  not  in 
excess  of  that  on  which  the  vessel  has  heretofore  usually  been  insured)  requi»'ed  for 
voyages  outside  the  following  warranties: 

la)  Warranted  not  to  enter  or  sail  from  any  port  or  ports,  place  or  places  in  British 
North  Amerif^a  on  the  Atlantic  coast,  except  Halifax.  Louisburg,  and  Sydney,  for 
purpose  of  coaling,  arming,  and  compulsory  examination  by  the  British  Government, 
and  not  north  of  50°  north  latitude  on  the  Pacific  coast. 

(b'i  ^\arranted  not  to  enter  the  Baltic  beyond  1.'^°  east  longitude,  or  sail  from  a 
loadintr  i)ort  therein  between  October  1  and  April  1. 

(c~*  Warranted  not  to  sail  for  or  from  any  port  or  place  on  the  north  coast  of  Eiirope 
between  North  Cape  and  Cape  Kanin,  and  not  to  proceed  east  of  Cape  Kanin  in  the 
Arctic  Ocean. 

(d)  Warranted  not  to  .sail  mth  Indian  coal  as  carero  between  March  1  and  June  30. 

(e)  Warranted  not  to  sail  for  or  from  any  port  or  place  in  the  Bering  Sea  or  Alaska 
or  Siberia  (except  that  vessels  may  enter  or  sail  from  Vladivostok  between  May  1 
and  Nov.  1). 

And  if  tlie  vessel  be  seaworthy  at  the  time  of  her  delivery  under  the  requisition 
and  at  the  commencement  of  the  voyage  from  the  United  States,  but  subsequently 
becomes  unseaworthy  so  as  to  ronstitate  a  breach  of  marine  insurance  warranty  of 
seavvorthine.ss,  and  such  unsea-.vorthiness  be  not  due  to  or  ])ermitted  to  continue  by 
the  neglect  or  misconduct  of  the  owner  or  his  agents,  and  loss  or  damacre  ensui-s  which 
is  proximately  occasion.^d  by  such  unseaworthiness,  the  T'nited  States  will  as,sun!e 
such  marine  loss,  in  case  the  same  shall  be  uncollectible,  the  extent  of  which  shall  be 
ascertained  as  of  the  date  of  suv-h  loss  or  ilamage.  The  United  Stales  Shipping  Board 
shall  have  the  right  t«  determine  finally  any  question  of  fact  arising  under  this  para- 
graph. '  , 

Upon  giving  five  days'  written  notice  the  United  States  may  elect  to  assume  all 
marine  ri.sks,  including  collision  liabilities. 

In  the  event  and  to  the  extent  that  ♦he  ownor  shall  not  be  able  to  secure  marine 
insurance  from  established  insurance  companies  at  rates  considered  reasonable  by 
the  United  States  Shipping  I'oard,  the  United  States  shall  assume  the  marine  risks, 
including  collision  liabilities,  until  such  tiute  as  the  owner  shall  be  able  to  secure 
such  insurance. 

Whenever  the  United  States  assumes  the  marine  risks,  includine  collision  liabilities, 
or  any  part  thereof,  a  deduction  which  in  the  ojtininn  of  the  Ignited  States  Shi])piug 
Board  represent?  a  proper  premium  charge  shall  be  maile  from  the  monthly  rate  of 
hire. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  27 

If  the  vp'sel  phall  bo  lost  in  a  servicp  whore  she  niav  have  been  exposed  to  both 
wur  and  ni:irino  risks,  in  the  event  of  there  b^iii','  no  evidence  ns  to  whether  loss  is 
due  to  marine  or  war  risk,  it  shall  be  ])re8umed  to  be  due  to  war  risk. 

The  owner  shall  insiire  ai'ainst  the  usual  protection  and  indemnity  risks  for  the  full 
protection  of  the  owner  and  the  United  States,  the  exjiense  thereof  to  be  borne  50 
per  cent  by  the  owner  and  50  per  cent  by  the  I'nited  States. 

l.S.  Insurance  o/"(t«((s.— Except  when  the  vessel  becomes  a  public  ship,  as  provided 
in  clause  ."},  the  owner  must  provide  and  pay  for  all  insuran'-e  on  the  master,  ofTicers, 
and  crew,  as  required  by  law:  Provided,  however.  That  the  United  States  shall  reim- 
burse the  owner  for  all  war-risk  insurance,  required  by  law,  on  the  ma.-ter,  ofRcera 
and  crew.  ' 

M.  Cnnipinsntion  in  event  of  losa  or  damage— Option  to  substitute  vessel.— Jn  case  of 
loss  or  dania!j;e  due  to  the  operation  of  a  risk  aa=iumed  by  the  United  States,  just  com- 
pensation for  such  loss  or  damage,  with  inte)est  at  fi  per  cent  per  annum,  commenc- 
ing 30  days  after  proof  of  such  loss  or  damasre.  shall  be  |)aid  by  the  United  States  in 
the  District  of  Columbia,  interest  not  to  be  paid,  however,  if  the  owner  resorts  to  any 
court  for  the  purpo.se  of  establishin<^  the  amount  of  the  hist  comj)ensation.  The 
United  States  shall,  however,  have  the  option  (to  be  exercised  within  00  days  after 
the  date  of  loss  or  constructive  loss  as  ])rovided  in  clause  15)  of  delivering  to  the  owner 
within  a  year  after  the  loss,  in  lieu  of  such  payment,  a  vessel  of  substantially  similar 
tonnage,  tyjie,  class,  and  value  and  of  substantially  no  greater  atre  (any  deficiency 
in  value  to  be  paid  for  in  cash),  ]>aying  interest  in  the  meanwhile  from  the  date  of  loss 
at  the  rate  of  G  per  cent  per  annum  on  the  value  of  the  lo.st  vessel. 

15.  Constructice  total  loss.  —U  the  steamship  sustains  serious  damage  or  other  inj\n-v 
arising  from  the  operation  of  a  risk  assumed  by  the  I'nited  States,  to  such  extent 
that  the  United  States  shall,  without  regard  to  any  rule  of  law,  consider  her  a  total 
loss,  the  United  States  shall  have  the  option  (to  be  exercised  within  90  days  there- 
after) of  declaring  the  steamship  to  be  a  total  loss  as  of  the  date  of  the  damasre,  and 
of  taking  over  or  selling  her,  and  the  owner's  rights  as  to  compensation  shall  be  the 
same  as  provided  in  clause  14,  interest  to  commence  30  days  after  proof  of  the  damage. 

16.  Space  and  accommodations. — The  whole  reach  of  tlie  ves.sel"s  holds,  decks,  and 
other  places  of  loading  and  accommodations  (not  to  be  loaded  beyond  what  she  can 
reasonably  stow  and  carry)  shall  be  at  the  disposal  of  the  United  States,  reserving 
only  proi^er  and  sufficient  space  for  ship's  officers,  crew,  tackle,  apparel,  furniture" 
provision.?,  stores,  and  fuel. 

17.  Duties  of  master. — The  master  shall  prosecute  his  voyages  with  the  utmost 
dispatch,  shall  render  all  customary  assistance  with  ship's  crew  and  boats,  and  use 
all  diligence  in  oaring  for  ventilation  of  the  cargo.  The  master  shall  be  under  the 
orders  and  directions  of  the  United  States  or  its  nominees  as  regards  employment  or 
agency.  The  United  States  shall  load,  stow,  and  trim  the  cargo  at  its  own  expense 
and  risk  under  the  supervision  of  the  master,  who  is  to  have  bills  of  lading  for  cargoes 
signed  as  presented,  without  prejudice  to  any  term  or  pro\Tsion  of  this  contract,  and 
the  United  States  hereby  aerees  to  indemnify  the  owner  from  all  consequences  or 
liabilities  that  may  arise  from  the  master's  signing  bills  of  lading  or  otherwise  comply- 
ing with  the  orders  and  directions  of  the  United  States. 

18.  liesponsibilitj/for  iun",gntion. — -The  master  shall  obey  all  orders  and  instructions 
which  he  may  receive  from  the  United  States  or  from  any  of  its  nominees,  and  shall 
in  all  respects  comply  with  any  confidential  instructions  for  masters  which  may  be 
issued  by  the  United  States,  but  he  shall  be  the  agent  of  the  owner  in  all  matters 
respecting  the  management,  handling,  and  naWgation  of*  the  vessel,  except  when 
the  vessel  becomes  a  public  ship  or  is  otherwise  subject  to  the  immediate  orders  of  the 
United  States  in  respect  to  such  matters. 

19.  Sailing  directions. —'[he  United  States  shall  furnish  the  master  fi'om  time  to 
time  with  all  requisite  instructions  atid  sailing  directions,  and  he  shall  keep  a  full 
and  complete  log  of  each  voyage,  which  is  to  be  patent  to  the  United  States  at  any 
time. 

20.  Complaints.— II  the  United  States  shall  have  reason  to  be  dis.satisfied  with  the 
conduct  of  the  master,  officers,  or  any  member  of  the  crew,  the  owner  shall,  on  receiv- 
ing particulars  of  comi^laint,  investigate  the  same,  and  if  nece.s.sary  make  a  change  in 
the  appointments.  In  case  of  an  emergency  not  permitting  of  such  complaint  and 
investi<>ation,  the  I'nited  States  shall  have  power  to  remove  the  master,  officers,  or 
any  member  of  the  crew  and  to  appoint  others  in  their  places,  but  if  possible  the 
owner  .shall  be  consulted  in  the  making  of  such  appointments. 

21.  Supercargo.- The  United  States  may  appoint  a  representative  to  accon;pany 
the  steaniship,  who  shall  be  furnished,  free  of  charge,  with  first-chuss  accommodations, 
if  space  permits,  and  the  same  fare  as  provided  at  the  captain's  table. 

22.  Lapse  of  hire.  -In  the  event  of  loss  of  time  frcmi  deficiency  of  men  or  stores, 
breaJidowu  of  machinery,  stranding,  collision,  dry-docking  for  the  purpose  of  exunin- 


28  EEPORT  OF  U.  S.  SHIPPING  BOARD. 

ins  or  paintin?  underM-att-r  T>arts  or  making  any  repairs,  or  from  any  othpr  cause  pre- 
venting the  Avorkiim  of  tho  vessel  for  more  than  24  consecutive  hours,  the  hire  shall 
be  reduced  one-half  until  the  \es,ssl  be  auain  in  an  eflicient  state  to  resume  her  service; 
provided,  howev  or,  that  in  case  of  loss  of  time  in  a  port  in  the  war  zone,  or  at  sea,  due 
to  any  such  cause,  no  such  rerluction  shall  be  made  if  the  owner  sliall  show  that  he 
used  due  dilij^ence  to  avoid  such  loss  of  time:  Provided  further,  That  there  shall  be  no 
reduction  of  hire  on  account  of  loss  of  time  arising  from  a  war  risk.  Should  the  vessel 
be  driven  into  ])ort  or  anchorage  by  stress  of  weather,  or  from  any  accident  to  caruo, 
detention  or  loss  of  time  occasioned  tliereby  shall  not  be  the  cause  for  any  cessation  or 
reduction  of  hire.  In  any  case  of  loss  of  time  for  whir-h  no  reduction  of  hire  is  made, 
credit  shall  be  given  to  the  United  States  for  any  exi)ensfcs  saved  by  the  ov.ner  durinp; 
such  time. 

23.  Dry-doching. — The  stearrLship  shall  be  dry-docked  and  her  bottom  cleaned  and 
painted  in  the  United  States  whenever  the  Ifnited  States  and  the  master  think  neces- 
sary, but  at  least  once  in  each  ei.Q;ht  months,  ]>rovided  the  exis^ency  permits. 

24.  Limitation  of  liability. — Throughout  the  period  of  ser\-ice  under  this  Time 
Form  losses  or  damages  arising  or  occasioned  by  the  following  causes  shall  be  always 
excepted,  \i7,,  the  act  of  God,  perils  of  the  seas,  fire  on  board,  in  hull,  craft,  or  on  shore, 
barratry  of  the  master  or  crew,  enemies,  pirates,  robbers  or  thieves,  arrests  and 
restraints  of  princes,  rulers,  and  peoples,  collisions  and  strandings.  explosions,  burst- 
ing of  boilers,  breakage  of  shafts,  or  any  latent  defect  (even  if  existing  at  the  begin- 
ning of  the  voyage,  but  not  discoverable  by  due  diligence)  in  the  hull,  boilers, 
machinery,  or  appurtenances,  negligence,  default,  or  error  in  judgment  of  the  pilot, 
master,  or  crew,  or  other  servants  of  the  owner,  in  the  management  or  navigation  of 
the  steamship. 

This  "time  form"  is  subject  to  all  the  terms  and  provisions  of  and  any  or  all  the 
exemptions  from  liability  contained  in  the  act  of  Congress  approved  February  13, 1893. 

25.  Gear  lights. — The  owner  shall  provide  gear  for  all  ship's  derricks,  and  shall 
maintain  the  gear  of  the  vessel  as  fitted.  The  owner  shall  provide  oil  and  lanterns 
for  night  work  or  vessel  shall  give  use  of  electric  lights  when  fitted  therewith.  The 
owner  shall  provide  ropes,  falls,  slings,  and  blocks  necessary  to  handle  ordinary  cargo 
up  to  3  tons  in  weight,  but  at  the  expense  of  the  United  States. 

26.  Day  and  night  ^vork  overtime. — The  vessel  shall  work  day  and  night,  as  required, 
and  the  steam  winches  shall  be  at  the  service  of  the  United  States  by  day  and  night, 
with  full  steam;  whenever  possible  without  additional  expense  to  the  owner  same 
to  be  worked  free  of  cost  by  the  crew.  The  United  States  shall  reimburse  the  owner 
for  all  overtime.  proA'ided  the  same  be  certified  by  the  agent  or  nominee  of  the  United 
States;  or,  if  no  agent  is  present,  by  the  master,  at  such  standard  rates  as  may  be  in 
force  from  time  to  time. 

27.  Alterations  and  vesseVs  condition  on  redelivery. — The  United  States  may  at  any 
time  remove  or  alter,  at  its  expense,  all  or  any  of  the  fittings  of  the  vessel,  and  may 
erect  any  new  fittings  which  may  l)e  required  to  render  the  vessel  available  for  service 
to  the  United  States,  provided  that  she  shall,  at  the  cost  of  the  United  States,  be 
redeUvered  to  the  owner  in  the  same  or  as  good  order  and  condition  as  that  in  which 
she  was  when  delivered  to  the  United  States,  ordinary  wear  and  tear  and  damage  due 
to  the  operation  of  risks  assumed  by  the  owner  excepted,  or  just  compensation  for  the 
damage  thus  occasioned  to  the  vessel,  with  interest  at  6  per  cent  per  annum  com- 
mencing 30  days  after  the  proof  of  such  damage  upon  redelivery  of  the  vessel,  shall 
be  paid  by  the  United  States,  in  the  District  of  Columbia,  interest  not  to  be  paid, 
however,  if  the  owner  resorts  to  any  court  for  the  purpose  of  establishing  the  amount 
of  the  just  compensation. 

28.  Salvage. — All  derelicts  and  salvage  shall  be  for  the  equal  benefit  of  the  United 
States  and  the  owner,  after  deducting  all  expenses  incident  thereto  and  the  propor- 
tion due  to  the  master,  officers,  and  crew. 

29.  General  average. — General  average,  if  incurred,  shall  be  settled  at  New  York 
according  to  York-Antwerp  rules  of  1S90  and  Antwerp  rule  of  1903,  and  as  to  matters 
not  covered  thereby  according  to  the  customs  and  practice  of  the  i)ort  of  New  York. 

30.  Liens. — The  United  States  shall  have  a  lien  on  the  vessel  for  all  moneys  paid 
and  not  earned  or  due  to  the  owner  and  for  all  advances  and  overpayments  made, 
and  the  United  States  shall  have  a  lien  on  all  cargoes  and  goods  for  the  payment  of 
freights  and  charges,  including  dead  freight,  demurrage,  forwarding  charges,  charges 
for  carriage  to  j)ort  of  shipment,  and  for  general  average  claims. 

31.  No  Memlxsr  of  or  Uelogate  to  Congress,  or  Resident  Commissioner,  nor  any 
person  employed  by  the  United  States  Shipping  Board  is  or  shall  be  admitted  to 
any  share  or  ])art  of  this  contract,  or  to  any  benefit  which  may  arise  therefrom,  but 
under  j)roviKions  of  section  IKi  of  the  act  of  Congress  approved  March  4,  1909,  this 
etipuluiion,  eo  far  as  it  relates  to  Members  of  or  JJelegates  to  Congress,  or  llesideut 


REPORT  OF  U.  S.  SHIPPING  BOARD.  29 

rnmmissinnors,  shall   not  extend  or  be  construed  to  extend  to  any  rontrart  made 
with  an  incorporated  company  for  its  general  benefit. 

32.  Arhilrnliyn. — Any  (lis]iiite  of  law  or  fact  arisinir  under  this  "time  form."  except 
as  to  the  rate  of  hire  and  the  compensation  for  actual  or  constructive  total  loss  of  the  ves- 
sel,and  except  asto  matters  expressly  left  to  be  decided  by  the  United  StatesShipping 
Board,  shall  Ix;  referred  to  the  arbitration  of  three  persons,  out*  appointed  by  the 
owner,  one  l)y  the  United  States,  and  the  third  by  the  two  so  chosen.  They"  may 
proceed  in  any  manner  determined  by  themselves,  "and  their  decision,  or  that  "of  any 
two  of  them,  shall  be  final,  and  for  the  ])urpose  of  enforcing  any  award  hereunder 
the  agreement  may  be  made  a  rule  of  coiu't.  Such  arbitration  shall  be  a  (•ondition 
precedent  to  the  commencement  of  any  action. 

SPECIAL,   CLAUSES — PASSENGER    S.IIPS. 

33.  The  owner  of  a  passenger  vessel  shall  ])ermit  the  use.  \vithout  extra  cost  therefor, 
of  all  cooking  ut(uisils  ami  facilities  already  aboard  the  vessel.  pro\'ided  the  same  or 
their  substantial  equivalent  be  redelivered  to  the  owner  in  the  same  or  as  good  order 
and  condition  as  when  received,  ordinary  wear  and  tear  and  damage  due  to  the 
operation  of  risks  assumed  by  the  owner  excejited.  An  inventory  of  such  property 
shall  be  furnished  forthwith  by  the  owner  to  the  United  States  for  verification, 

34.  The  own(>r  of  a  passenger  vessel,  if  rerpiested  by  the  United  States,  whenever 
passengers  are  on  board  the  vessel,  shall  operate  and"  maintain  the  saloon  mess,  for 
which  the  owner  shall  be  compensated  at  reasonable  rates  to  be  fixed  by  the  United 
States. 

35.  The  owner  of  a  passenger  vessel,  if  requested  by  the  United  States,  shall  operate 
and  maintain  a  trooj)  mess,  in  which  the  meals  served  shall  be  the  equivalent  of  the 
authorized  United  States  Ai-my  garrison  ration,  and  for  which  the  owner  shall  be 
compensated  at  reasonable  rates  to  be  fixed  by  the  United  States. 

36.  Whenever  passengers  are  carried  (troops  or  others)  the  United  States  shall 
receive  all  the  earnings  therefrom,  and  pay  all  expenses  incidental  thereto  which 
are  not  assumed  by  the  owner  under  the  other  provisions  of  this  "time  form,"'  in- 
cluding repairs  and  uj^keep  of  fittings  (suljject  to  ordinary  wear  and  tear  but  not 
breakage),  and  shall  also  furnish  any  additions  it  may  require;  or,  in  the  alternative, 
shall  make  a  special  arrangement  with  the  owner  on  a  pt^r  head  basis. 

SPECIAL   CLAUSES — TANKERS. 

37.  Trmls  to  be  oil  tight. — The  owner  guarantees  that  the  tanks  are  oil  tight  at  the 
time  of  delivery  and  shall  take  every  precaution  to  maintain  them  in  this  condition 
during  the  ser\'ice.  Init  shall  not  be  responsible  for  leakage. 

38.  The  owner  shall  facilitate  the  discharge  of  oil  fuel  to.siich  ships  as  the  United 
States  shall  direct,  and  shall  pro\'ide  a  Y  piece  with  the  necessary  reducers  for  each 
discharge  up  to  the  maximima  number  which  can  be  used  simultaneously. 

Bare  Boat  Form. 

1.  Period  of  service — Vessel  to  he  enmpleteh/  equi  pjiednnrf  fit — Mnl-inoaoofldcfrrts. — The 
steamship  shall  remain  in  the  service  of  the  United  States  under  the  requisition  order 
to  be  emplo\  ed  as  and  where  the  United  States  may  from  time  to  time  determine  and 
for  such  period  of  time  as  the  Ihiited  States  may  determine,  but  such  period  shall  not 
extend  beyond  the  first  arrival  of  the  steamship  in  an  American  port  six  months  after 
peace  is  declared,  unless  she  shall  be  required  for  Government  purposes.  The  vessel, 
when  placed  at  the  disposal  of  the  United  States,  as  directed  by  it,  shall  be  or  .shall 
forthwith  be  made  at  the  cx])ense  of  the  owner  tight,  staunch,  slrnng,  and  well  and 
sufficiently  tackled,  appareled,  furnished,  outfitted,  and  equipped,  and  in  every 
respect  seaworthy  and  in  good  running  order  and  condition,  and  shall  be  fit  for  the 
service  in  whicli  she  has  usually  been  employed,  having  on  her  deliverv  TTnited 
States  inspection  certificate  that  the  steamship  has  met  all  requirements  to  fit  her  for 
the  trade  in  which  she  is  employed  at  the  time  of  the  requisition,  except  that  no  .-uch 
ceitificate  shall  be  required  if  she  Ije  a  foreign-built  vessel  not  at  present  subject  to 
the  United  States  steamboat  inspection  laws  as  provided  in  the  Panama  Canal  act, 
as  amended  August  18,  1914.  Any  deficiency  in  these  respects  must  be  remedied 
forthwith  at  the  expense  of  the  owner;  and  any  time  lost  in  remedying  such  deficiency 
is  not  to  be  paid  for  by  the  United  States. 

2.  Operation. — The  United  States,  at  its  sole  expense,  .shall  man,  operate,  \'ictual, 
and  supply  the  vessel. 

3.  Port  'charges. — The  United  States  shall  pay  all  port  charges,  pilotages,  and  all 
other  costs  and  expenses  incident  to  the  use  and  operation  of  the  vessel. 


30  REPORT  OF  U.  S.  SHIPPING  BOARD. 

4.  War  and  marine  risJ:s. — The  United  States  shall  assume  Nar,  marine,  and  all  other 
risks  of  -tvhatsoever  nature  or  kind,  includinsr  all  risk  of  liability  for  damage  occasioned 
to  other  vessels,  persons,  or  pro])erty. 

5.  I'ayment  of  hire. — The  United  States  shall  pay  for  the  use  of  the  steamship  at  the 
monthly  rate  which  shall  from  time  to  time  be  established  by  the  United  States 
Shippiiisr  Board  for  a  vessel  of  her  description,  commencint;  on  and  from  the  hour 
when  she  shall  be  ready  for  delivery  under  the  requisition  (and  is  so  reported  to  the 
United  States)  and  at  and  after  the  same  rate  for  any  part  of  a  month,  hire  to  continue 
until  the  hour  at  which  the  vessel  may  be  ready  for  redelivery  at  a  United  States 
port  (and  is  so  reported  to  the  owner). 

If  the  United  States  Shippine:  Board  shall  hereafter  lower  the  rate  of  hire  from  that 
in  effect  on  October  15,  1917,  the  owner  shall  have  the  option  of  cancelino  this  requisi- 
tion charter  as  of  the  date  of  such  reduction,  without  prejudice  to  the  rights  of  either 

Payment  of  the  hire  shall  be  made  in  the  District  of  Columbia,  in  cash,  monthly, 
as  earned,  at  the  end  of  each  calendar  month.  If  the  vessel  is  lost,  hire  shall  be  paid 
up  to  and  including;  the  date  of  her  loss  (if  the  time  of  her  loss  be  uncertain,  then  up 
to  and  including  the  date  she  is  last  heard  from). 

Dtcid-iveight  tonnage. — Dead-weight  tonnage  shall  be  based  on  summer  freeboard 
assigned  or  to  be  assigned  with  reference  to  North  Atlantic  ser^d^e,  according  to  the 
standards  of  any  recognized  classification  society;  proper  evidence  of  such  assign- 
ment, together  with  a  true  copy  of  the  dead-weight  scale  of  the  vessel,  shall,  if  possible, 
be  furnished  by  the  owner.  Until  reasonable  opportunity  has  been  afforded  the  oM'ner 
to  procure  such  assignment,  hire  shall  be  paid  on  dead-weight  tonnage  as  certified 
by  the  OAvner,  any  excess  or  deficiency  in  such  hire  to  be  adjusted  upon  subsequent 
determination  of  summer  freeboard. 

6.  Classification. — A  certified  statement  from  a  recognized  classification  society 
that  the  vessel  has  been  classed  as  fit  for  her  usual  pre^^ous  service  shall,  if  obtainable 
at  a  reasonable  cost,  l)e  furnished  by  the  owner.  Any  alterations  which  are  made  to 
obtain  a  class  for  North  Atlantic  service  which  are  not  required  to  obtain  a  class  for 
the  vessel's  previous  usual  service  shall  be  made  by  and  at  the  expense  of  the  United 
States,  but  there  shall  be  no  deduction  from  the  hire  for  time  consumed  in  making 
such  alterations.  So  far  as  the  exigencies  of  the  service  will  permit,  the  United  States 
shall  do  all  things  necessary  to  maintain  the  vessel's  class. 

7.  Fuel  and  stores. — The  United  States  shall  accept  and  pay  for  all  fuel  and  consum- 
able stores  in  cood  order  and  condition  on  board  at  the  time  of  vessel's  delivery  under 
the  requisition  order,  and  the  owner  shall,  on  redelivery,  pay  for  all  such  supplies 
left  on  board  at  the  current  market  price  at  the  respective  ports  of  delivery  and  re- 
delivery. An  inventory  of  all  such  supplies  shall  be  furnished  forthwith  by  the  owner 
to  the  tJnited  States  for  verification. 

8.  Outfit  and  equipment. — The  United  States  shall  have  the  use  of  all  outfit,  equip- 
ment, and  appliances  wdthout  extra  cost,  provided  same  or  their  substantial  equivalent 
shall  be  returned  to  the  owner  when  the  vessel  is  redelivered  in  the  same  or  a?  good 
order  and  condition  as  when  received,  ordinary  wear  and  tear  excepted.  An  inven- 
tory of  such  property  shall  be  furnished  forthmth  by  the  owner  to  the  United  States 
for  verification. 

9.  Compensation  in  event  of  loss  or  damage. — In  case  of  actual  or  constructive  loss 
as  provided  in  clause  10,  due  to  the  operation  of  a  risk  assumed  by  the  United  States, 
just  compensation  for  such  loss,  with  interest  at  6  per  cent  per  annum,  commencing 
30  days  after  the  date  of  such  loss,  shall  be  paid  by  the  United  States  in  the  District 
of  Columbia,  interest  not  to  be  paid,  however,  if  the  owner  resorts  to  any  court  for  the 
purpose  of  establishing  the  amount  of  the  just  compensation.  The  United  States 
shall,  however,  have  the  option  (to  be  exercised  within  90  days  after  the  date  of  such 
actual  or  constructive  loss)  of  delivering  to  the  owner  within  a  year  after  such  loss, 
in  lieu  of  such  payment,  a  vessel  of  substantially  similar  tonnage,  type,  class,  and  value 
and  of  substantially  no  greater  age  (any  deficiency  in  value  to  be  paid  for  in  cash), 
l)aying  interest  in  the  meanwhile  from  the  date  of  loss  at  the  rate  of  6  per  cent  per 
annum  on  the  value  of  the  lost  vessel. 

In  case  of  damage  (not  constituting  an  actual  or  constructive  loss)  due  to  the  opera- 
tion of  a  risk  assumed  by  the  United  States,  the  vessel  shall,  at  the  cost  of  the  United 
States,  be  restored  to  the  owner  at  the  expiration  of  her  service  under  the  requisition, 
in  the  same  or  as  good  order  and  condition  as  that  in  which  she  was  when  delivered 
to  the  United  States,  ordinary  wear  and  tear  exce[)ted,  or  just  compensation  for  the 
damage,  with  interest  at  6  j)er  cent  per  annum,  commencing  30  days  after  proof  of  such 
damage  upon  redelivery  of  the  vessel,  shall  he  paid  bv  the  T^'nited  States  in  the  Dis- 
trict of  Columbia,  interf"^t  not  to  be  paid,  however,  if  the  owner  resorts  to  any  court 
for  the  purpose  of  establishing  the  amount  of  the  just  compensation. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  31 

10.  Comttrurtirc  total  loss. — If  the  'Steamship  nuatains  serious  damage  or  other  injury 
to  the  extent  that  the  United  States  shall,  without  re.Lrard  to  any  ruh;  of  law,  consider 
her  a  totiil  Ions,  the  United  State.^  shall  have  the  option  (t<j  be  exercised  withinp  90 
days  thereafter)  of  deilariui,'  thesteani.ship  to  he  a  total  loss  as  of  the  date  of  the  damage, 
and  of  takint;  over  or  sellin<;!;  her,  and  the  owner's  rights  as  to  compensation  shall  be  the 
same  as  provided  in  clause  9,  intere.-t  to  commence  30  days  after  the  date  of  the  damatre. 

11.  Alt f rations  and  vesseVs  condition  on  redeliver t^. — The  United  Stiites  may  at  any 
time  remove  or  alter,  at  its  expen.se,  all  or  any  of  the  fittings  of  the  vessel,  and  may 
erect  any  new  fittings  which  may  be  recjuired  to  render  the  ^■essel  available  for  service 
to  the  United  States,  pro\ided  that  the  ve.ssel  shall,  at  the  co.-t  of  the  I'nited  States, 
be  restored  to  the  owner  at  the  expiration  of  her  ser\'ice  under  the  requisition  in  the 
same  or  as  good  order  and  condition  as  that  in  which  she  was  when  delivered  to  the 
United  States,  ordinary  wear  and  tear  excepted,  or  just  compensation  for  the  damage 
thus  occasioned  to  the  vessel,  with  interest  at  6  per  cent  per  annum,  commencing 
30  days  after  the  proof  of  such  damage  upon  redelivery  of  the  vessel,  shall  be  paid  by 
the  United  States  in  the  District  of  Columbia,  interest  not  to  be  paid,  however,  if  the 
owner  resorts  to  any  court  for  the  purpose  of  establishing  the  amount  of  the  just  com- 
pensation. 

12.  Liens. — The  TTnited  States  shall  have  a  lien  on  the  vessel  for  all  moneys  paid 
and  not  earned  or  due  to  the  owner  and  for  all  advances  and  overpayments  made, 
and  the  United  States  shall  have  a  lien  on  all  cargoes  and  goods  for  the  payment  of 
freights  and  charges,  including  dead  freight,  demurrage,  forwarding  charges,  charges 
for  carriage  to  port  of  shipment,  and  for  general  average  claims. 

13.  Arbitration. — Any  dispute  of  law  or  fact  arising  under  this  "bare  boat  form," 
except  as  to  the  rate  of  hire  and  the  compensation  for  actual  or  constructive  total  loss 
of  the  vessel  and  except  as  to  matters  expressly  left  to  be  decided  by  the  United  States 
Shipping  Board,  shall  be  referred  to  the  arbitration  of  three  persons,  one  appointed 
by  the  owner,  one  by  the  United  States,  and  the  third  by  the  two  so  chosen.  They 
rriay  proceed  in  any  manner  determined  by  themselves,  and  their  decision,  or  that 
of  any  two  of  them,  shall  be  final ,  and  for  the  purpose  of  enforcing  any  award  hereunder 
the  agreement  may  be  made  a  rule  of  court.  Such  arbitration  shall  be  a  condition 
precedent  to  the  commencement  of  any  action. 

14.  No  Member  of  or  Delegate  to  Congress  or  Resident  Commissioner,  nor  any  person 
employed  by  the  United  States  Shipping  Board,  is  or  shall  be  admitted  to  any  share 
or  part  of  this  contract,  or  to  any  benefit  which  may  arise  therefrom,  but  under  the 
provisions  of  section  116  of  the  act  of  Congress  approved  March  4,  1909,  this  stipulation, 
so  far  as  it  relates  to  Members  of  or  Delegates  to  Congress  or  Resident  Commissioners, 
shall  not  extend  or  be  construed  to  extend  to  any  contract  made  with  an  incorporated 
company  for  its  general  benefit. 

SPECIAL   CLAUSE — PAP.SENGER   SHIP. 

15.  The  owner  of  a  passenger  vessel  shall  permit  the  use,  without  extra  cost  therefor, 
of  all  cooking  utensils  and  facilities  already  aboard  the  vessel,  pro^^ded  the  same  or 
their  substantial  equivalent  be  returned  to  the  owner  when  the  vessel  is  redelivered 
in  as  good  order  and  condition  as  when  received,  ordinary  wear  and  tear  excepted. 
An  inventory  of  such  property  shall  be  furnished  forthwith  by  the  owner  to  the  United 
States  for  verification. 

SPECIAL   CLAUSES — TANKERS. 

16.  Tanks  to  be  oil  tight. — The  owner  guarantees  that  the  tanks  are  oil  tight  at  the 
time  of  delivery.  .  . 

17.  Gear.— To  facilitate  the  discharge  of  oil  fuel,  the  owner  shall  provide  a  Y  piece 
with  necessary  reducers  for  each  discharge  up  to  the  maximum  number  which  can  be 
used  simultaneously. 

Exhibit  K. 

[U.  S.  S.  B.  Charter  Form  No.  3.] 

United  States  Shipping  Board. 

requisition  agreement — tank  steamship. 

Requisition  agreement,  dated ,  1918,  between  ——-^^—-hereinafter 

called  the  "owner,"  and  the  United  States,  acting  through  the  United  States  bhip- 
ping  Board,  witnesseth  that  ,     ^.  .     ,  ^  •  •.-        ,  xu 

Whereas  by  order  dated  October  12,  1917,  the  United  States  requisitioned  the  use 
of  vessels  of  the  character  in  said  requisition  order  set  forth,  including  certain  tank 
steamships  then  belonging  to  the  owner;  and 


32  REPORT  OF  U.  S.  SHIPPING  BOARD. 

Wht-roas  the  United  States  Shipping  Board  and  the  ovmer  desire  to  define  the  rights 
and  dulics  of  the  United  States  SIii])pin£r  Board  and  of  the  owner  with  respect  to 
the  operation  of  said  tank  steamships  under  requisition  as  and  where  the  United 
States  Ship])in,ir  ISoard  shall  direct. 

Now.  therefore,  it  is  a.sreed  between  the  parties  as  follows: 

First.  The  owner  airrees  to  sign  requisition  charters  (U.  S.  S.  B.  Charter  Form  No.  3) 
covering  all  tank  steamships  owned  liy  it  which  were  included  within  the  description 
of  sixid  requisition  order,  said  retiuisition  charters  to  be  effective  as  between  the  parties 
hereto  as  of  the  date  when  said  charters  would  have  been  effective  under  the  terms 
of  said  requisition  order  if  they  had  Ix'en  signed  and  delivered  on  Octo])er  12,  1917. 
If  anv  tank  steamship  coming  within  the  descrij)fion  in  said  re(|uisition  order  set 
forth  has  been  reriuisitioned  by  the  United  States  Ship]nng  Board,  acting  on  behalf 
of  tlie  Tnited  States.  1)V  s])ecial  order  prior  to  October  12,  1917,  the  said  requisition 
c-harter  shall  be  deemed  to  be  effective  as  of  the  date  when  such  special  requisition 
became  effective.  The  parties  agree  to  account  to  and  vrith  each  other  under  said 
charters  and  this  agreement  as  though  said  charters  had  become  effective  as  aforesaid, 
it  beinsr  understood,  however,  that  no  expenses  heretofore  actually  incurred  in  good 
faith  in  ccmnection  with  the  operation,  re])air,  and  maintenance  (oth(>r  than  such 
repairs  as  may  have  been  necessary  in  order  to jilace  said  tank  steamshii)s  in  good 
order  and  condition  as  provided  in  said  re(iuisition('harters)  of  the  said  tank  steam- 
8hii)s  since  th(»  resi)ective  dates  when  said  r(H|uisition  charters  may  have  become 
effective  resjH'ctively  as  aforesaid,  shall  be  excluded  from  any  such  account.  Nothing 
containetl  in  this  agreement  shall  be  construed  to  cancel  or  affect  any  insurance  which 
has  been  heretofore  taken  out  by  the  owner  from  insurance  companies  or  other  in- 
surers, or  to  impair  in  any  way  any  claim  of  tlie  owner  which  has  heretofore  accrued 
or  may  hereafter  accrue  \\ith  res]iect  to  any  such  insurance,  or  any  claim  of  the  owner 
or  any  insurance  company  or  an\'  insurer  against  any  third  party,  which  has  hereto- 
fore accrued  or  which  may  hereafter  accrue,  in  respect  to  any  loss  or  damage  to  any 
tank  sleamshi]-)  co\ered  by  this  agrei'iiient.  The  owner  shall  not,  by  the  execution 
of  said  re(|uisitiou  charters  or  any  accounting,  i)ayment,  or  adjustment  thereunder, 
be  ileemed  to  have  accepted  the  compensation  })rovided  for  in  the  "bare  boat  form" 
of  such  charters  as  the  just  com])ensation  required  by  law,  unless  it  shall  so  elect,  nor 
shall  it  be  deemed  to  have  made  any  voluntary  ])ayment  precluding  action  under 
clause  "Third"  hereof  for  the  just  compensation  recpiired  by  law,  it  being  understood, 
however,  that  the  validity,  effect,  and  ap])lication  of  the  requisition  order  of  October 
12,  1917,  in  accordance  with  the  terms  thereof,  as  to  any  vessel  covered  thereby,  shall 
be  recognized  l)y  the  owner  for  all  i)ur])oses  of  this  agreement. 

Second.  Exc(']it  during  sui'h  ]K'riod  as  said  tank  steamships  may  be  or  may  have 
been  oi)erated  in  transatlantic  ser\iee,  or  in  some  service  other  than  that  of  the  owner, 
said  tank  steamships  .shall  be  o])erated  in  the  possession  and  service  of  the  owner  and 
for  the  sfjle  risk  and  account  of  the  owner  free  from  any  obligation  to  account  here- 
under to  the  United  States  Shi])])ing  ]'>oard.  and  the  use  of  said  tank  steamships  in 
such  case  by  the  owner  shall  l^e  in  full  siitisfaction  of  the  obligations  of  the  United 
States  and  the  owner  under  said  requisition  ajiplicable  to  such  period,  and/or  under 
any  oi)eraliiig  agreement  as  contemplated  by  clause  "Fourth"  hereof. 

Third.  W'iiile  oiierated  in  transatlantic  service,  or  in  some  service  other  than  that 
of  the  owner,  said  tank  steamshi])s  shall  be  o])erated  under  the  terms  and  conditions 
of  the  "bare  boat  form"  of  recpiisition  charter  (U.  S.  S.  B.  Charter  Form  No.  3).  If 
the  owner  refuses  to  accept  the  hire  established  by  the  United  States  Shipping  Board 
88  the  just  comj)ensalion  recpurtfd  by  law,  the  United  States  shall  ])ay  to  the  owner 
75  per  cent  of  such  hire  as  th(>  same  becomes  due  and  the  owner  shall  be  entitled,  in 
accordanct^  with  the  law,  to  sue  the  United  States  to  recover  such  further  sum  as  will 
constitute,  when  added  to  said  75  per  cent,  the  just  compensation  required  by  law. 
Said  "bare  boat  form"  of  requisition  charter  shall  be  deemed  el'fective  since  noon  of 
October  15,  1917,  as  1o  said  tank  steamships  whib^  em])l<)yed  in  Iransatlantic  8er\dce 
or  in  some  service  other  than  that  of  the  owner,  from  tht'  timi;  the  owner's  cargoes  are 
discharged  and  ves.sels  are  put  in  good  order  and  condition,  as  ])rovided  in  clause 
"First"  of  said  "bare  boat  form"  until  cargoes  are  discharged  and  vessels  are  put  in 
like  good  order  and  condition  as  six-cified  in  said  "bare  boat  form"  and  are  ready  for 
rcflelivery  Xo  owner  at  a  jwrt  not  less  ad\antageous  to  the  owner  than  the  port  of  de- 
livery, but  said  "bare  boat  form"  shall  not  be  deemed  effective  as  to  any  tank  steam- 
shij)  trading  to  and  from  American  ])orts  that  sailed  on  its  voyage  before  noon,  October 
15,  1917,  until  return  to  a  I'nited  Stales  port  u])on  completion  of  such  voyage;  and  said 
"bare  ix'at  form"  shall  not  be  deenu-d  effeciive  as  to  any  tank  steamshi])  returning 
light  or  in    jallasl  until  it  reaches  owucr'b  loading  port  and  is  put  in  good  order  and 


REPOKT  OF  U.  S.  SHIPPING  BOARD.  33 

condition  aa  aforpsaifl,  or  until  it  is,  prior  to  the  arrival  at  such  port,  diverted  from  its 
course  to  the  ])rejudice  of  the  owner. 

I'ourth.  When  ojjeraled  in  transatlantic  service,  or  in  some  service  other  than  that 
of  the  owner,  the  owner,  when  re(|ueste(l,  a,<i;rees  to  act  as  operating,'  a,i;:eiit  of  the  I'nited 
States  Shi])])in(;;  IJoard  for  such  compensation  as  may  be  determined  by  said  board 
accordin,!,'  to  a  general  plan  to  be  hereafter  established. 

Fifth.  The  United  States  Shipping  Board  will  recommend  that  the  Bureau  of  War 
Risk  Insurance  be  open  to  the  owner  while  its  tank  steamships  are  ojierated  in  the 
possession  and  service  of  the  owner  as  contemplated  in  clause;  "Second"  hereof. 

Sixth.  I'or  the  ])ur])oses  of  this  agreement,  a  tank  steamshiji  shall  be  deemed  in  the 
service  of  the  owner  only — 

(«)  When  employetl  in  the  usual  previous  service  customarily  maintained  by  the 
owner,  carrying  cargoes  exclusively  owned  by  the  owner  or  by  a  company  affiliated 
with  it  under  common  control    or 

(h)  When  employcnl  in  the  carriage  of  cargoes  owned  by  any  other  owner  of  tank 
steamshij)s  or  a  company  afhliated  ^nth  it  iind(n-  common  control  in  the  usual  preAdous 
ser^-ice  customarily  maintained  by  any  such  owner,  provided,  however,  that  in  such 
case  the  freight  charged  and  the  "differentials  allowed  shall  not  be  fixed  at  amounts 
which  will  jdeld  a  greater  return  to  the  owner  on  any  voyage  than  that  produced  by 
the  requisition  rates  from  time  to  time  established  by  the  United  States  Shipping 
Board. 

All  freights  collected  for  the  carriage  of  cargoes  other  than  as  above  stated  shall  be 
accounted  for  under  the  "bare  boat  form"  of  requisition  charter  (U.  S.  S.  B.  Charter 
Form  No.  3),  as  provided  for  in  clauses  "First"  and  "Third"  of  this  agreement; 
the  owner,  however,  of  any  tank  steamship  not  covered  by  requisition  chirter 
(U.S.  SB.  Charter  Form  No.  2)  reserving  the  rights  specified  in  clause  "Third"  hereof 
to  accept  75  per  cent  of  the  hire  established  by  the  United  States  Shipping  Board 
as  the  just  compensation  required  by  law,  and  to  bring  suit  against  the  Lnited  States 
for  such  just  compen-sation. 

Seventh.  In  cases  where  any  vessel  shall  pass  from  owner's  service  to  Government 
serv-ice,  or  vice  versa,  under  circumstances  which  would  render  the  taking  of  an 
inventory  or  the  exact  ascertainment  of  the  portions  of  any  items  of  expenses  or  dis- 
bursements (other  than  insurance  premiums)  which  should  be  chargeable  to  the 
owner  or  to  the  United  States,  as  the  case  may  be,  in  respect  of  different  parts  of  a 
given  voyage  or  given  period  of  time,  impossible,  difficult,  uneconomical,  or  inprac- 
ticable,  there  shall  be  an  equitable  and  proportionate  division  between  the  owner 
and  the  United  States  Shipping  Board  of  the  cost  of  svipplies  or  other  expenses  or 
disbursements  which  may  have  been  actually  inciurred  during  such  voyage  or  such 
period  of  time. 

Eighth.  This  agreement  shall  have  no  effect  upon  the  requisition  charters  (U. 
S.  S.  B.  Charter  Form  No.  2),  if  any,  which  may  have  been  signed  by  the  owner 
covering  tank  steamships  which  were  under  constniction  for  the  owner  on  August 
3,  1917,  and  which  were  commandeered  by  the  United  States  Shipping  Board  Emer- 
gency Fleet  Corporation  on  that  date,  and  were  subsecpiently  transferred  to  the 
owner;  all  such  requisition  charters  which  have  heretofore  been  signed  covering 
such  tank  steamships  shall  be  in  full  force  and  effect  according  to  the  terms  thereof, 
except  that  until  five  days'  written  notice  to  the  contrary  is  given  to  the  owner  by 
the  United  States  Shipping  Board  while  any  such  tank  steamship  is  operated  in  the 
service  of  the  owner,  as  hereinbefore  defined,  other  than  in  transatlantic  service, 
the  owner  shall  have  (upon  the  conditions  hereinl)efore  stated)  the  use  of  the  tank 
steamship  for  his  own  risk  and  account  in  full  satisfaction  of  the  obligation  of  the 
United  States  and  the  owner  under  such  requisition  charter  applicable  to  such  period 
and/or  under  any  operating  agreement  as  contemplated  by  clause  "Fourth"  hereof. 
The  provisions  of  this  claijse  "Eighth"  shall  also  Ije  applicable  to  any  tank  steam- 
ships completed  since  August  3,  1917,  which  may  hereafter  be  transferred  to  the 
owner  and  to  any  other  tank  steamships  as  to  wliich  the  owner  may  hereafter  execute 
and  deliver  said  requisition  charter  (U.  S.  S.  B.  Charter  Form  No.  2). 

Witness  to  the  si-'nature  of — ,  Oiciier. 

By 

Witness  to  the  signature  of —                     The  United  States  Shipping  Board, 
By ,  Director  of  Operations. 

o28m°—ii.  Doc.  o6,  U7-1 3 


34  BEPORT   OF    U.   S.   SHIPPING  BOARD. 

Exhibit  L. 

(Form  1029— S.  B.     U.  S.  S.  B.  Charter  Form  No.  3. 

United  States  of  America. 

requisition  charter  for  tank  steamship, 

Name  of  steamship, ■. 

Type  of  steamship, . 

Dead-weipht  tonnage, ■. 

Gross  tonnafie, . 

Knots  per  hour. 


Date  vessel  came  under  requisition, 


This  requisition  charter  made  and  conchided  upon  in  the  District  of  Cohimbia  the 

day  of ,  1918,  between ,  of  of ,  owner  of  the 

good  .\merican screw  steamship of  • — ■ — —  tons  gross  register  and  — ■ 

tons  net  register,  built  in  ■ ■ — •,  having  engines  of nominal  horsepower,  pro- 
vided with  proper  certificate  for  hull  and  machinery,  and  classed  at ■ 

of  about  — ■ cubic  feet  capacity  and  tons  dead-weight  capacity,  summer 

freeboard,  inclusive  of  permanent  bunkers,  capable  of  making  an  average  voyage 

speed   when    loaded    of  knots  an   hour,   under  ordinary  conditions,   on  a 

consumption  of  about tons  of  coal,  or  about barrels  of  oil  per  24  hours; 

and  the  United  States  of  America,  through  the  United  States  Shipping  Board— 

Witnesseth: 

Whereas  by  requisition  order  dated  October  12,  1917,  piu-suant  to  the  ujgent  defi- 
ciency act  of  June  1.5,  1917,  and  the  President's  Executive  order  of  July  11,  1917, 
the  United  States  has  requisitioned  the  use  of  the  steamship  — ■ — — ;  and 

Whereas  it  is  desired  by  the  United  States  and  by  the  owner  to  define  by  agreement 
the  rights  and  duties  of  the  United  States  and  of  the  owner  with  respect  to  the  oper- 
ation of  the  vessel  under  the  requisition,  and  with  respect  to  other  matters  in  connec- 
tion therewith; 

Now  therefore,  it  is  agreed  as  follows: 

First.  The  vessel  shall  be  operated  according  to  the  terms  and  conditions  of  the 

requisition  agreement,  dated  — ■ — ■ — • ■,  1918,  and  of  the  "bare-boat  form,"  which 

are  annexed  and  made  parts  of  this  requisition  charter,  all  of  which  instruments  are 
to  be  construed  together  at  whatever  date  they  may  be  signed. 

Second.  Upon  giving  five  days'  written  notice  to  the  owner  the  Unit<rd  States  may 
at  any  time,  when  the  vessel  is  in  a  port  not  less  advantageous  to  the  owner  than  the 
port  of  delivery,  cancel  this  requisition  charter  (including  the  requisition  agreement 
so  far  as  it  relates  to  the  vessel),  without  prejudice  to  the  acci^ued  rights  of  either 
party,  or  the  requisitioning  powers  of  the  United  States. 

Witness  to  the  signature  of—  ,  Owner. 

__.  By . 

Witness  to  the  signature  of —  The  United  States  SnirpiNo  Board, 


BARE    BOAT    FORM. 


1.  Period  of  serrire — Vessel  to  be  completly  equipped  and  fil — Making  good  defects. — 
The  steamship  shall  remain  in  the  service  of  the  T'nited  States  under  this  ''bare 
boat  form"  to  l)e  employed  as  and  where  the  United  States  may  from  time  to 
time  determine  and  for  such  period  of  time  as  the  United  States  may  determine, 
but  such  period  shall  not  extend  beyond  the  first  arrival  of  the  steamship  in  an 
American  port,  six  months  after  peace  is  declared,  unless  she  shall  be  required  for 
Government  purposes  connected  with  the  war  emergency.  The  vessel,  when  placed 
at  the  disposal  of  the  United  States,  as  directed  by  it,  shall  be  or  shall  forthwith  be 
made,  at  the  expense  of  the  owner,  tight,  staunch,  strong,  and  well  and  sufficiently 
tackled,  appareled,  furnished,  outlitted,  and  equipjK'd,  and  in  every  respect  seaworthy 
and  in  goo(l  running  order  and  condition,  and  shall  l)e  fit  for  the  service  in  which  she 
has  usually  been  employed ,  having  on  her  delivery  Ignited  States  inspection  certificate 
that  the  steamsliip  has  met  all  rerjuirements  to  fit  her  for  the  trade  in  which  she  is  em- 
ployed at  the  time  of  the  requisition,  except  that  no  such  certilicale  shall  be  required 
if  she  be  a  foreign-built  vessel  not  at  present  suliject  to  the  I'nited  States  steamboat- 
inspection  laws  as  provided  in  the  Panama  Canal  act  as  amended  August  18,  1914. 


REPOET  OF  U.  S.  SHIPPING  BOARD.  35 

Any  deficiency  in  these  respects  must  he  remedied  forthwith  at  the  expense  of  the 
owner,  and  any  time  lost  in  remedying  such  deficiency  is  not  to  be  paid  for  by  the 
United  States. 

2.  Operation. — The  United  States,  at  its  sole  expense,  shall  man,  operate,  victual, 
and  supply  the  vessel. 

3.  Pilot  charqes. — The  United  States  shall  pay  all  port  charges,  pilotages,  and  all 
other  costs  and  expenses  incident  to  the  use  and  operation  of  the  vessel. 

4.  War  and  marine  risks. — The  United  States  shall  assume  war,  marine,  and  all  other 
risks  of  whatsoever  nature  or  kind,  including  all  risk  or  lialnlity  for  damage  occa- 
sioned to  other  vessels,  persons,  or  property. 

5.  Pai/ment  of  hire. — The  ITnitod  States  shall  pay  for  the  use  of  the  steamship  at  the 
monthly  rate  which  shall  from  time  to  time  1)C  esta])lished  by  the  United  States  Ship- 
ping Board  for  a  vessel  of  her  description,  commencing  on  and  from  the  hour  whcni  she 
shall  be  readj'  for  delivery  under  this  "bare  boat  form"  (and  is  so  reported  to  the 
Ignited  Slates)  and  at  and  after  the  same  rate  for  any  part  of  a  month,  hire  to  continue 
until  the  hour  at  whicli  the  vessel  may  be  ready  for  redelivery  at  a  United  States  port 
(and  is  so  reported  to  the  owner),  at  the  expiration  of  her  service  under  this  "bare  boat 
form,"  provided  the  (.)\vner  accepts  this  "bare  boat  form"  and  the  compcmsation 
herein  provided  for  as  the  just  compensation  required  V)y  law.  If  the  owner  does  not 
accept  this  "bare  boat  form"  and  the  compensation  herein  provided  as  the  just  com- 
pensation required  by  law,  the  United  States  shall  pay  to  the  owner  a  sum  equal  to  75 
per  cent  herein  provided  as  the  same  shall  from  time  to  time  become  due,  and  the 
owner  shall  be  entitled,  in  accordance  with  the  law,  to  sue  the  United  States  to 
recover  such  further  sums  as  added  to  said  75  per  cent  will  constitute  the  just  com- 
pensation required  by  law. 

If  the  United  States  Shipping  Board  shall  hereafter  lower  the  rate  of  hire  from  that 
in  effect  October  15,  1917,  the  owner  who  may  have  previously  accepted  this  "bare 
boat  form"  as  the  just  compensation  required  by  law,  may  thereafter  elect  to  receive 
75  per  cent  of  the  hire  as  the  same  shall  from  time  to  time  become  due,  and  in  accord- 
ance with  the  law,  to  sue  the  United  States  to  recover  such  further  sum  as  added  to  said 
75  per  cent  will  constitute  the  just  compensation  required  by  law. 

Payment  of  the  hire  shall  be  made  in  the  District  of  Columbia,  in  cash,  monthly,  as 
earned,  at  the  end  of  each  calendar  month.  If  the  vessel  is  lost,  hire  shall  be  paid  up 
to  and  including  the  date  of  her  loss  (if  the  time  of  her  loss  be  uncertain,  then  up  to 
and  including  the  date  she  is  last  heard  from). 

Dead-weight  tonnage. — Dead-weight  tonnage  shall  be  based  on  summer  freeboard 
assigned  or  to  be  assigned  with  reference  to  North  Atlantic  service,  according  to  the 
standards  of  any  recognized  classification  society;  proper  evidence  of  such  assignment, 
together  with  a  true  copy  of  the  dead-weight  scale  of  the  vessel,  shall,  if  posfiible,  be 
fm'nished  by  the  owner.  Until  reasonable  opportunity  has  been  afforded  the  owner  to 
procure  such  assignment,  hire  shall  be  paid  on  dead-weight  tonnage  as  certified  by  the 
owner,  any  excess  or  deficiency  in  such  hire  to  be  adjusted  upon  subsequent  determi- 
nation of  summer  freeboard. 

6.  Classification. — A  certified  statement  from  a  recognized  classification  society  that 
the  vessel  has  been  classed  as  fit  for  her  usual  previous  service  shall,  if  obtainal:)le  at  a 
reasonable  cost,  be  furnished  by  the  owner.  Any  alterations  which  are  made  to 
obtain  a  class  for  North  Atlantic  service  which  are  not  required  to  obtain  a  class  for  the 
vessel's  previous  usual  service  shall  be  made  by  and  at  the  expense  of  the  Ignited 
States,  but  there  shall  be  no  deduction  from  the  hire  for  time  consumed  in  making 
such  alterations.  So  far  as  the  exigences  of  the  service  will  permit,  the  United  States 
shall  do  all  things  necessary  to  maintain  the  vessel's  cla.«s. 

7.  Fuel  and  stores. — The  United  States  shall  accept  and  pay  for  all  fuel  and  consum- 
able stores  in  good  order  and  condition  on  board  at  the  time  of  vessel's  delivery  under 
tliis"bare  boat  form,"  and  the  owner  shall,  on  redelivery,  pay  for  all  such  supplies  left 
on  board,  at  the  current  market  price  at  the  respective  ports  of  delivery  and  redelivery. 
An  inventory  of  all  such  supplies  shall  be  furnished  forthwith  by  the  owner  to  the 
United  States  for  verification. 

8.  Outfit  and  equipment. — The  United  States  shall  have  the  use  of  all  outfit,  equip- 
ment, and  appliances  without  extra  cost,  provided  same  or  their  substantial  equivalent 
shall  be  returned  to  the  owner  when  the  vessel  is  redelivered  in  the  same  or  as  good 
order  and  condition  as  when  received,  ordinary  wear  and  tear  excepted.  An  inventory 
of  such  property  shall  be  furnished  forthwith  by  the  owner  to  the  United  States  for 
verification. 

9,.  Compensation  in  event  of  loss  or  damage. — In  case  of  actual  or  constructive  loss 
as  provided  in  clause  10,  due  to  the  operation  of  a  risk  assumed  by  the  United  States, 
just  compensation  for  such  loss,  with  interest  at  (5  per  cent  per  annum,  commencing 
30  days  after  the  date  of  such  loss,  shall  be  paid  by  the  United  States  in  the  District 


36  EEPORT  OF  U.  S.  SHIPPING  BOARD. 

of  CoIiiml)ia,  iiiTcrost  not  to  be  paid,  however,  if  the  owner  resorts  to  any  court  for 
the  purpose  of  estaMishing  the  amount  of  tlie  just  rompensation.  The  United  States 
sliall,  however.  lia\e  the  option  «to  he  exercis.-d  within  90  cUiys  after  the  date  of  such 
actual  or  constructive  loss)  of  delivering  to  the  owner  within  a  year  after  such  loss, 
in  lieu  of  such  payment,  a  vessel  of  suhstantially  similar  tonnage,  t>T3e,  class,  and 
value  and  of  sulistantially  no  greater  age  (any  deficiency  in  value  to  be  paid  for  in 
cash  I.  paying  interest  in  the  meanwhile  from  the  date  of  loss  at  the  rate  of  6  per  cent 
per  annum  on  the  value  of  the  lost  vessel. 

In  case  of  damage  (not  constituting  an  actual  or  constructive  loss)  due  to  the  opera- 
tion of  a  risk  assumed  by  the  I'nitv'd  States,  the  -vessel  shall,  at  the  cost  of  the  United 
States,  be  restored  to  the  owner  at  the  expiration  of  her  service  under  tliis  ''bare 
boat  form' '  in  the  same  or  as  good  order  and  condition  as  that  in  which  she  was  when 
deliAcred  to  the  United  Stut'.s  under  this  "liarc  boat  form."  ordinary  wear  and  tear 
excepted,  or  just  compensition  for  the  damage,  with  interest  at  G  per  cent  per 
annum,  commencing  150  days  after  proof  of  such  damage  upon  redelivery  of  the  ves- 
sel, shall  lie  ]iaid  l>y  the  United  States  in  tlie  District  of  Columbia,  interest  not  to  be 
jiaid,  however,  if  the  owner  resorts  to  any  court  for  the  purpose  of  establishing  the 
amount  of  the  just  compensation. 

10.  Conslructive  total  loss. — If  the  steamship  sustains  serious  damage  or  other  injury 
to  the  extent  that  the  United  States  shall,  without  regard  to  any  rule  of  law.  con- 
sider her  a  total  loss,  the  United  States  shall  have  the  o])tion  (to  be  exercised  within 
no  da\s  thereafterl  of  declaring  the  steamship  to  be  a  total  lo.'-s  as  of  the  date  of  the 
damage  and  of  taking  over  or  selling  her,  and  the  owner "s  rights  as  to  compen.sation 
shall  lie  the  same  as  provided  in  clause  9,  interest  to  commence  30  days  after  the  date 
of  the  damage. 

11.  Alterations  and  vesseVs  condition  on  redeliver]/. — The  United  States  may  at 
any  time  remove  or  alter,  at  its  expense,  all  or  any  of  the  fittings  of  the  vessel,  and 
may  erect  any  new  fittings  which  may  be  required  to  render  the  vessel  availal^le 
for  service  to  the  United  States,  provided  that  the  vessel  shall,  at  the  cost  of  the 
I'nited  States,  be  restored  to  the  owner  at  the  expiration  of  her  .service  under  this 
"bare  boat  form"  in  the  same  or  as  good  order  and  condition  as  that  in  which  she  was 
when  delivered  to  the  United  States  under  this  "liare  lioat  form."  ordinary  wear  and 
tear  excepted,  or  just  compensation  for  the  damage  thus  occasioned  to  the  vessel, 
with  interest  at  6  per  cent  per  annum,  commencing  30  days  after  the  proof  of  such 
damage  upon  redelivery  of  the  vessel,  shall  be  paid  by  the  United  States  in  the  Dis- 
trict of  Columbia,  interest  not  to  be  paid,  however,  if  the  owner  resorts  to  any  court 
for  the  purpose  of  establishing  the  amount  of  the  just  compensation. 

12.  Liens. — The  United  States  sliall  have  a  lien  on  the  vessel  for  all  moneys  paid 
not  earned  or  due  to  the  owner  and  for  all  advances  and  overpayments  made,  and  the 
United  States  shall  have  a  lien  on  all  cargoes  and  goods  for  the  payment  of  freights 
and  charges,  including  dead  fnnght.  demurrage,  forwarding  charges,  charges  for  car- 
riage to  jiort  of  shipment,  and  for  general  average  claims. 

13.  Arbitration. — Any  disimtc  of  law  or  fact  arising  under  this  "bare  boat  form," 
except  as  to  the  rate  of  hire  and  the  compensation  for  actual  or  constructive  total  lo.ss 
of  the  vessel,  matters  expressly  left  to  bo  decided  by  the  United  States  Sliipping  l^oard, 
and  the  rights  of  the  owner  to  sue  reserved  under  clause  5,  shall  lie  referred  to  the  arbi- 
tration of  three  ]iersons.  one  appointed  by  the  owner,  one  by  the  United  States,  and 
the  third  by  the  two  so  chosen.  They  may  procei'd  in  any  manner  determined  by 
them.selves.  and  their  decision,  or  that  of  any  two  of  them,  shall  be  linal.  and  for  the 
piirpo,se  of  eiifori'ing  any  award  hereunder  the  agnx'iiient  may  be  made  a  rule  of 
court.  Such  arldtration  shall  l>e  a  condition  precedent  to  the  commencement  of  any 
action . 

14.  No  Member  of  or  Delegate  to  Congress  or  Resident  Commissioner,  nor  any  per- 
son employed  by  the  United  States  Shi]iping  Board,  is  or  sliall  lie  admitted  to  any 
share  or  part  of  this  contract  or  to  any  lienefit  which  may  arise  therefrom,  but  under 
the  ]irovisioris  of  section  1  Ki  of  the  act  of  Congress  ap])roved  ?ilarch  I,  1000.  this  stipu- 
lation, so  far  as  it  relates  to  Memliers  of  or  Delegates  to  Congress  or  Resident  Com- 
missioners, shall  not  extend  or  lie  construed  to  extend  to  any  contract  made  with 
an  incoriioratetl  company  for  its  general  lienelit. 

15.  Tanks  to  he  oil  tight. — The  owner  guarantees  that  the  tanks  are  oil  tight  at  the 
time  of  delivery. 

10.  Clear. — To  facilitate  the  discharge  of  oil  fuel,  liie  owner  .shall  provide  a  Y  piece, 
with  necessary  redueers,  for  each  discharge  ui:i  to  tiie  maximum  number  which  can 
be  used  simultaneously. 


REPORT  OF   U.   S.   SHIPPING  BOARD.  37- 

Exhibit  M. 

[U.  S.  S.  B.  Charter  Form  No.  6.) 

United  States  of  America. 

requisition  ciiakter  fou  sailing  vessels 


Name  of  sailing  ^•essel 
Type  of  sailing  vessel  - 
Dead-weight  tonnage  - 

Gross  tonnage . 

Date  on  which  vessel  entered  into  pay 


This  reciuisitiou  charter  made  and  concluded  upon  in  the  District  of  Tolumbia, 

the  • —  day  of — ,  1918,  between of (city), ^(state),  owner 

of  the  good  American (insert  type  of  vessel)  of ,  of —  tons  gross 

r(!gister  and  — tons  net  register,  built  in ,  having  auxiliary  engines  of 

nominal  liorsepower,  provided  with  proper  certilicate  for  hull  and  machinery,  and 
classed at of  about  cubic  feet  capai  ity  and  ;■  tons  dead- 
weight capacity,  summer  freel)oard,  inclusi\e  of  ])erniancnt  bunkers,  if  any;  and 
the  United  States  of  America,  through  the  United  States  Shipping  Board  — 

Witnesseth: 

Wliereas,  by  requisition  order,  dated  — — — ,  1918,  the  United  States  has  requisi- 
tioned the  use  of  the  sailing  vessel ,  and  the  vessel  has  been  deli\  ered  into  pos- 
session of  the  United  Statt'.s  pursuant  to  the  requisition;  and 

Wliereas,  it  is  desired  by  tlie  United  States  and  by  the  owner  to  fix  the  compensa- 
tion (hereinafter  called  hire)  which  the  United  States  shall  pay  to  tlie  owner  for  use  of 
the  vessel  so  requisitioned,  and  to  define  by  agreement  the  rights  and  duties  of  the 
I'liited  States  and  of  the  owner  with  respect  to  the  operation  of  tlie  vessel  under 
the  requisition  and  with  respect  to  other  matters  in  connection  therewith; 

Now,  therefore,  it  is  agreed  as  follows: 

First.  The  terms  and  "conditions  under  which  the  vessel  is  to  be  operated  shall  be 
those  contained  in  the  ''time  form"  hereto  annexed;  unless  the  United  States  elects 
to  operate  the  vessel  under  the  terms  and  conditions  contained  in  the  "'bare  boat 
form  "  hereto  annexed.  Upon  giving  t\\  e  days'  written  notice,  the  United  States  may 
at  any  time,  or  from  time  to  time,  change  from  the  "time  form"  to  the  ''bare  boat 
form,"  or  vice  versa,  the  cliange  to  become  effective  when  the  vessel  is  in  port. 

Second.  In  consideration  of  the  compensation  provided  and  the  other  obligations 
assumed  by  the  United  States  hereunder,  the  owner  accepts  this  requisition  charter 
in  full  satisfaction  of  any  and  all  claims  he  has  or  may  ha\  e  against  the  United  States 
arising  out  of  the  requisition  and  accepts' the  compensation  herein  provided  for  as  the 
just  comjKUisation  recpiired  by  law:  Provided ,  however,  That  the  acceptance  of  this 
requisition  charter  shall  be  without  prejudice  to  the  claim,  if  any,  that  the  owner  may 
ha\'e  against  the  United  States  arising  out  of  recoveries  against  the  owner  by  third 
])arties  on  the  vessel's  commitments,  it  being  distinctly  understood  that  the  United 
States  does  not  in  any  way  admit  any  liability  in  respect  to  any  such  claim. 

Third.  U]»on  giving  five  days'  written  notice  to  the  owner  the  United  States  may 
at  any  time,  when  the  vessel  is  in  a  United  States  port,  cancel  this  requisition  charter 
without  ]M'ejudice  to  the  accrued  rights  of  either  party. 

Witness  to  (he  signature  of—  ,  Owner. 

-.  By . 

Witness  to  the  signature  of —                               United  States  Shipping  Board. 
-— .  By . 

TIME    FORM. 

Whereas  the  United  States  has  determined  to  deliver  possession  of  the  vessel  to 
the  owner  to  be  opei-ated  by  the  owner  for  the  United  States: 

Now,  tlierefore,  it  is  agreed  as  follows" 

1 .  Period  oj  service — Vessel  to  be  complrtehi  equipped  and  fit. — The  vessel  shall  remain 
in  the  service  of  the  United  States  under  the  requisition  order  to  be  employed  as  and 
where  the  United  States  may  from  time  to  time  determine,  but  such  period  sViall  not 
extend  beyond  the  first  arrival  of  the  vessel  in  an  American  port  six  montlis  after 
peace  is  declared  unless  she  shall  be  retjuired  for  Government  pur]>oses.  The  vessel 
mav  be  tov/ed  as  and  where  the  United  States  may  direct.  The  vessel,  when  placed 
at  the  disposal  of  the  United  States,  as  directed  by  it,  shall  be  or  sliall  forthwith  be 
made  by  and  at  the  expense  of  the  owner  tight,  staunch,  strong,  and  well  and  sufiiciently 


45i.G65 


38  REPORT  OF  U.  S.  SHIPPING  BOARD. 

tackled,  apparaled.  furnished,  outfitted  and  equipped,  and  in  every  respect  seaworthy 
and  in  fjood  running  order  and  condition;  and  shall  be  fit  for  the  ser\dce  in  ■«'hich 
she  has  usually  been  employed.  ha\ins:  on  her  delivery  United  States  inspection 
certificate  that  she  has  met  all  requirements  of  law  for  such  ser^dce,  and  having  a 
full  comi>lement.  including  the  master,  officers,  and  crew  for  a  vessel  of  her  tonnage. 
Anv  deficiency  in  these  respects  must  be  remedied  by  and  at  the  expense  of  the  owner, 
an<i  any  time  lost  and  any  expense  incurred  in  remedying  any  such  deficiency, 
eitlu^r  at  the  time  of  delivery  or  at  any  time  thereafter,  is  not  to  be  paid  for  by  the 
United  States. 

2.  Operation  of  vessels,  vages,  etc. — Special  equipment. — The  owner  shall  operate  the 
vessel  for  the  United  St;itcs,  shall  proA-ide  and  pay  for  all  pro-visions,  wages,  bonuses. 
and  consular  shipping  and  discharging  fees  of  the  master,  officers,  and  crew,  and  shall 
provide  and  pay  for  all  calnn,  deck,  engine  room,  and  other  necessary  stores,  including 
fuel  for  galley,  and  shall  maintain  tlu^  ve.sscl  in  a  thoroughly  efiicient  state  in  hid] 
and  niachineiy,  tackle,  apparel,  furniture,  and  equipment  during  the  service.  If  the 
service  refpiires  any  special  equipment  in  addition  to  that  required  for  the  vessel's 
previous  usual  service,  such  equii)ment  shall  be  provided  and  paid  for  by  the  X'nited 
States. 

3.  Status  of  vessel. — The  owner  shall  take  all  proper  steps  to  prevent  any  suit  or 
process  from  interfering  with  the  service  of  the  vessel. 

When  a  pvhlir  ship. — When,  however,  the  requisitioned  vessel  is  engaged  in  the 
8er\'ice  of  the  War  or  Navy  l)ei)arlment,  the  ^■essel  shall  haA'e  the  status  of  a  public 
shi]!,  and  although  the  owner  shall  continue  to  provide  and  pay  for  all  the  items  stated 
to  be  provided,  and  paid  for  by  the  owner  while  operating  the  vessel  as  provided  in 
clause  2,  the  master,  officers,  and  crew  shall  become  the  immediate  employees  and 
agents  of  the  United  States  and  all  the  rights  and  duties  of  such,  the  vessel  passing 
completely  into  the  possession  and  the  master,  officers,  and  crew  absolutely  under 
the  control  of  the  United  States.  The  owner,  master,  officers,  and  crew  shall  be 
notified  of  the  commencement  and  termination  of  the  vessel's  employment  in  the 
serivce  of  the  War  or  Navy  Department,  and  a  proper  notation  shall  be  made  on  the 
shiy)'s  aiticles  prior  to  the  signing  thereof  showing  that  the  mas-ter,  officers,  and  crew 
have  entered  into  the  service  of  the  United  Stat(>s.  Monthly  or  as  soon  as  possible  after 
the  termination  in  a  United  States  port  of  any  voyage  in  the  service  of  the  War  or 
Navy  I)e])ailment  the  owner  shall  furnish  the  United  States  as  a  voucher  a  statement 
by  the  United  States  8hip])ing  commissioner  which  shall  certify^  the  dates  and  amounts 
of  the  payment  of  the  wages  and  bonuses  of  the  master,  officers,  and  crew  as  the  same 
a])pear  on  the  completed  articles. 

4.  Na'ionalitv  of  crew. — So  far  as  practicable  every  member  of  the  crew  shall  be 
an  Amear-ati  citizen,  citizens  and  subjects  of  enemy^  or  ally  of  enemy-  nations  alway^s 
excluded.  Full  lists  of  crew,  witli  their  ratines  and  nationalities,  shall,  if  required, 
be  produced  to  the  United  States  at  the  time  of  delivery  of  the  vessel  or  on  the  entry 
into  the  pay  of  the  vessel  of  such  member  or  members  of  the  crew. 

5.  United  States  vnll  provide  fuel,  etc. — The  United  States  shall  provide  and  pay  for 
all  coals  or  other  fuel  (except  galley),  fresh  water,  port  charges,  pilotages,  agencies, 
commissions,  brokerage,  wharfage,  and  consular  charges  (except  those  pertaining  to 
tlu'  master,  officers,  and  crew)  and  all  other  usual  expenses  paid  l)y  charterer  under 
BO-called  "(iovernment  form  time  charter,"  exce])t  as  otlierwise  provided.  The 
United  States  shall  roimbui'se  the  owner  for  all  income  or  excess-profits  taxes  to  foreign 
countiii's  upon  iiuomo  or  i)rofits  derived  from  the  vessel  and  accruing  to  the  United 
States. 

().  Dunnage. — Tiie  United  States  shall  pro\-ide  the  necessary  dunnage  and  shifting 
boards,  but  the  owner  shall  allow  the  United  States  the  use  ()f  dunnage  and  shiftimr 
boards  ahvadv  on  board  tlie  vessel.  The  United  States  shall  have  the  i)rivilege  of 
using  tlu'  shifting  boards  for  dunnage,  but  sliall  make  good  any  damage  tliereto. 

7.  F}trl  i,n  dcliverii  awl  redelivery. — The  Ignited  States  shall  accept  and  pay  for  all 
fuel  ('except  galley)  on  bo.ard  at  the  lime  of  delivery  under  the  requisition  order, 
aixl  the  owiu'r  sliall  on  the  redelivery  of  tiie  vessel  ])ay  for  all  fuel  left  on  hoard  (except 
galley)  at  tiie  current  m  nket  price  at  the  respective  ports  of  delivery  and  redelivery. 
A  Htalemeiit  ()f  such  fuel  shall  be  furnished  forthwith  by  the  owner  to  "the  United  States 
for  verification. 

S.  J'ai/inrnt  <f  hire. — The  ITnited  States  shall  pay  for  the  use  of  the  vessel  at  the 
monthly  rale  which  shall  from  time  to  time  be  established  by  the  United  States 
Slii|i|)ing  iloird  for  a  siiliiig  vessel  of  her  descrijition.  commen<"ing  on  and  from  the 
hour  tliaf  s'lc  shall  be  rculy  for  delivery  under  the  requisition  (and  is  so  reported  to  the 
United  States)  and  at  an<l  after  the  same  rate  for  any  part  of  a  nu)nth,  hire  to  continue 
until  (he  hour  at  whi.h  tiie  vessel  may  be  ready  for  redelivery  at  a  United  States  port 
(and  is  so  re|>ort('(l  to  the  owner). 


REPORT  OF  U.  S.  SHIPPING  BOARD.  39 

If  the  United  Stitoa  Shippins;  Board  shall  hereafter  lower  the  time  form  rate  of 
hire  from  that  in  effect  on  the  date  of  tlu>  reciuisition,  the  owner  shall  have  tiie  option, 
to  he  exercised  within  live  days  after  notice,  of  cancelin'j;  this  "time  form,"  such 
cancellation  to  hecome  effective  when  vessel  is  next  in  port  and  free  of  cargo. 

Payment  of  hire  shall  he  mad(>  in  the  District  of  ('olunil)ia  in  cash,  monthly,  as 
earned,  at  the  end  of  eacli  calendar  montli.  if  tlie  vessel  is  lost,  liire  siiail  he  paid  up 
to  and  inchidini^  the  date  of  her  lo.ss  if  the;  time  of  lier  loss  is  uncertain,  then  up  to  and 
including  the  date  she  is  last  heard  from). 

Dead-tveight  tonnage— Deiid-\:ci'j-}\t  capacity  shall  he  based  on  summer  freeboard 
assigned  or  to  be  assigned  with  reference  to  North  Atlantic  service,  according  to  the 
standards  of  any  recognized  classification  society,  hut  shall  not  be  deemed  to  exceed 
the  dead-weiglil  carrying  capacity  of  the  vessel  as  (let"rmine(l  from  actual  performance 
when  all  underwriters'  requirements  are  complied  with.  Proper  e\idence  of  assign- 
ment, together  witli  a  true  cojiy  of  the  dead-weight  scale  of  the  vessel,  sliall,  if  po.ssible, 
be  furnished  by  the  owner.  Until  reasonable  opportunity  has  been  afforded  the  owner 
to  procure  such  assignment,  hire  shall  be  ))aid  on  dead-weight  tonnage  as  ceitilied  by 
the  owner,  any  excess  or  deficiency  in  such  hire  to  be  svibsc  piently  adjusted. 

9  Clussifirolion. — A  certified  statement  from  a  recognized  classification  .society  that 
the  vessel  has  been  classed  as  fit  for  her  previous  usual  service  shall,  if  obtainable 
at  a  reasonable  cost,  be  furnished  by  the  owner.  So  far  as  the  exigencies  of  the  ser\dce 
will  permit,  the  owner  shall  do  all  things  necessar\'  to  maintain  the  vessel's  class. 

10.  Iiiveutori/  of  outfit . — The  United  Slates  shall  have  the  use  of  all  outfit,  ecjuip- 
ment,  and  ajijiiiances  without  extra  cost,  aiul  the  sanu>  or  their  substantial  equivalent 
shall  be  returned  to  the  owner  when  the  vessel  is  redelivered  in  the  same  or  as  gootl 
order  and  condition  as  when  received,  ordinary  wear  and  tear  and  damage  due  to  the 
operation  of  risks  assumed  by  the  owner  excepted.  An  inventory  shall  i)e  furnished 
forthwith  by  the  owner  to  the  United  States  for  verification. 

11.  Insuranrc  of  vessels.— The  owner  shall  assume  the  marine  risks,  including 
collision  liabilities  (excepting  losses  and  liabilities  arising  from  war  risks).  The 
"Jnited  States  shall  assume  war  risks  (including  collision  liabUities)  as  excluded  by 
the  following  clause  in  the  American  hull  policy,  1916  form:  "Warranted  free  of 
caj:)ture,  seizure,  arrest,  restraint,  or  detainment,  or  the  consequences  thereof,  or 
of  any  attempt  thereat  (piracy  excepted)  ami  also  from  all  consequences  of  hostilities 
or  vvarlike  operations,  whetber  before  or  after  the  declaration  of  war." 

The  United  States  shall  pay  excess  marine  insurance  premiums  (based  upon  value 
not  in  excess  of  that  on  which  the  vessel  has  heretofore  usually  been  insured)  required 
for  voyage  outside  the  following  warranties: 

(a)  Warranted  not  to  enter  or  sail  from  any  port  or  ports,  place  or  places  in  British 
North  America  on  the  Atlantic  coast,  except  Plalifax,  I>ouisburg,  and  Sidney,  for 
purposes  of  coaling,  arming,  and  compulsory  examination  by  the  British  Government, 
and  not  north  of  50  degrees  north  latitude  on  the  Pacific  coast. 

(b)  Warranted  not  to  enter  the  Baltic  beyond  13  degrees  east  longitude,  or  sail  from 
a  loading  port  therein  between  October  1  and  April  1. 

{(■)  Warranted  not  to  sail  for  or  from  any  port  or  place  on  the  north  coast  of  Europe 
between  North  Cape  and  Cape  Kanin  and  not  to  proceed  east  of  Cape  Kanin  in  the 
Arctic  0(  can. 

(d)  Warranted  not  to  sail  with  Indian  coal  as  cargo  between  March  ]  and  June  80. 

{e)  WarrantcMl  not  to  sail  for  or  from  any  port  or  place  in  the  Behring  Sea  or  Alaska 
or  Siberia  (except  that  vessels  may  enter  or  sail  from  Vladivostok  between  May  1 
and  November  I). 

Upon  giving  five  days'  written  notice  the  United  States  may  elect  to  assume  all 
marine  risks,  including  collision  liabilities. 

In  the  event  and  to  the  extent  that  the  owner  shall  not  be  able  to  secure  marine 
insurance  from  established  insurance  companies  at  rates  considered  reasonable  by 
the  United  States  Shipping  Board,  the  United  States  shall  assume  the  marine  risks, 
including  collision  liabilities,  until  such  time  as  the  owner  shall  be  able  to  secure 
insurance. 

Whenever  the  United  States  assumes  the  marine  risks,  including  collision  liabilities, 
or  any  part  thereof,  a  deduction  which  in  the  opinion  of  the  United  States  Shipping 
Board  represents  a  jjrojjcr  premium  charge  shall  be  made  from  the  monthly  rate  of 
hire.  If  the  vessel  shall  be  lost  in  service  where  she  may  have  been  exposed  to  both 
marine  and  war  risks,  in  the  event  of  there  being  no  evidence  as  to  wnether  loss  is 
due  to  marine  or  war  risk,  it  .shall  be  presumed  due  to  war  risk. 

The  owner  shall  insure  against  the  usual  protection  and  indemnity  risks  for  the 
full  protection  of  the  owner  and  the  United  States,  the  expense  thereof  to  be  borne 
50  per  cent  by  the  owner  and  50  per  cent  by  the  United  Statea. 


40  REPORT  OF  U.  S.  SHIPPING  BOARD. 

12.  Insurance  of  crew. — The  owner  must  provide  and  pay  for  all  insurance  on  the 
master,  officers,  "and  crew  required  by  law;  pro\ided,  however,  that  the  United 
Sutes  "shall  reimburse  the  owner  for  any  war  risk  insurance  required  by  law  on  the 
master,  officers,  and  crew. 

■  13.  Comprnsdlion  in  event  of  loss  or  damage — Option  to  stibstitute  vessel. — In  case  of 
actual  or  con-tructive  total  loss  or  of  such  total  loss  as  is  proAdded  for  in  clause  14, 
due  to  the  oiieration  of  a  risk  assumed  by  the  United  States,  just  compensation  for 
such  loss,  with  interest  at  (5  per  cent  per  annum,  commencing  30  days  after  the  owner 
shall  have  submitted  formal  proofs  of  such  loss,  in  such  form  as  the  United  States 
Shippins;  Board  may  presc  ribe,  shall  be  paid  by  the  United  States  in  the  District  of 
Columbia,  interest  not  to  be  paid,  however,  if  the  owner  resorts  to  any  court  for  the 
purpose  of  eslablishintr  the  amount  of  the  just  com])en.';ation.  The  United  States 
shall,  however,  have  the  option  (to  b(>  exorcised  within  90  days  after  the  proof  of 
such  loss)  of  deliverins,'  to  the  owner  within  a  year  after  such  loss,  in  lieu  of  such 
payment,  a  vessel  of  substantially  similar  tonnage,  tyj^e,  class,  and  value,  and  of 
substantially  no  greater  age  (any  deficiency  in  the  value  to  be  paid  for  in  cash),  pay- 
ing interest  in  tlie  meanwhile  from  the  date  of  lo.«s  at  the  rate  of  6  per  cent  per 
annum  on  the  value  of  the  lost  vessel.  In  case  of  damage  (not  constituting  an  actual 
or  constructive  total  loss,  or  such  loss  as  is  pro\dded  for  in  clause  14,  due  to  the  opera- 
tion of  a  risk  assumed  by  the  United  States,  the  vessel  shall,  at  the  cost  of  the  United 
States,  be  restored  to  the  owner  at  the  expir.ition  of  her  service  under  the  requisition 
in  the  same  or  as  good  order  and  condition  as  that  in  which  she  was  when  delivered 
to  the  United  States,  ordinary  wear  and  tear  excepted,  or  just  compensation  for  the 
damage,  with  interest  at  fi  per  cent  per  annum,  commencing  30  days  after  proof  of 
such  damage  upon  redelivery  of  the  vessel,  shall  be  paid  by  the  United  States  in  the 
District  of  Columbia,  interest  not  to  be  paid,  however,  if  the  owner  resorts  to  any 
court  for  the  purpose  of  establishing  the  amoimt  of  just  compensation. 

14.  Con.'ilructive  total  loss  at  option  of  United  iStates. — If  the  vessel  sustains  serious 
damage  or  other  injury  arising  from  the  operation  of  a  risk  assumed  by  the  United 
States,  to  such  extent  "that  the  UnitcMl  States  shall,  without  regard  to  any  rule  of  law, 
consider  her  a  total  loss,  the  United  States  shall  have  the  option  (to  be  exercised 
within  90  days  thereafter)  of  declaring  the  vessel  to  be  a  total  loss,  as  of  the  date  of 
the  damage,  and  of  taking  over  or  selling  her,  and  the  owner's  rights  as  to  compensa- 
tion shall  be  the  same  as  provided  in  clause  13,  interest  to  commence  30  days  after 
proof  of  the  damage. 

15.  Space  accommodations. — The  whole  reach  of  the  vessel's  holds,  decks,  and  other 
places  of  loading  and  accommodations  (not  to  be  loaded  beyond  what  she  can  reason- 
ably stow  and  carry)  shall  be  at  the  disposal  of  the  United  States,  reser\dng  only  proper 
and  sufficient  space  for  ship's  ofHcers,  crew,  tackle,  apparel,  furniture,  provisions, 
stores,  and  fuel. 

10.  Duties  of  master. — The  master  shall  prosecute  his  voyage  with  the  utmost  dis- 
patch, shall  render  all  customary  assistance  with  ship's  crew  and  boats,  and  use  all 
diligence  in  caring  for  ^■erltilation  of  the  cargo.  The  master  shall  be  under  the  orders 
and  directions  of  the  Ignited  States  or  its  nominees  as  regards  employment  or  agency. 
The  I'nited  States  shall  load,  stow,  and  trim  the  cargo  at  its  own  expense  und(>r  the 
supervision  of  the  master,  who  is  to  sign  bills  of  lading  for  cargoes  as  pres(>nled,  without 
prejudice  t(i  anv  term  or  provision  of  this  contrat^t,  and  the  United  States  hereby  agrees 
to  indemnify  the  owner  from  all  consequences  or  ]ial)ili1ies  that  may  arise  from  the 
master's  signing  bills  of  lading  or  otherwise  c^omplying  with  the  orders  and  directions 
of  the  United  States. 

17.  Responsihilily  for  navigation. — The  master  shall  obey  all  orders  and  instructions 
which  he  may  receive  from  the  Uniterl  States,  or  from  any  of  its  nominees,  and  shall 
in  all  respects  cSinply  wdth  any  conlidential  instructions  for  masters  which  may  be 
issued  l)y  the  United  States,  but  he  shall  i)e  the  agent  of  the  owner  in  all  matters 
respecting  the  management,  handling,  and  navigation  of  the  ves.sel. 

IS.  Sailing  directions. — The  United  States  .shall  furnish  the  master  from  time  to 
time  with  all  requisite  instrnctions  and  sailing  directions,  and  he  shall  keep  a  full  and 
complete  log  of  (!ach  voyage,  which  is  to  be  patent  to  the  United  States  at  any  time. 

19.  Complaints. — If  the  United  States  shall  have  reason  to  be  dissatisfied  with  the 
conduct  of  the  master,  officers,  or  any  member  of  the  crew,  the  owner  shall,  on  receiv- 
ing particidars  of  complaint.  invc>stigate  the  same,  and  if  necessary  make  a  change  in 
the  appointinents.  In  case  of  an  emergency  not  permitting  of  such  complaint  and 
investigation,  the  United  Slates  shall  have  pow(T  to  remove  the  master,  officers,  or 
any  member  of  the  crew  and  to  a[)p(»int  others  in  their  places,  but  if  possible  the  owner 
.shall  be  consnited  in  tlie  nuiking  of  siuii  ajipointiiu'nts. 

20.  Supcrcurgo. — The  United  States  may  apj)oint  a  representative  to  accompany  the 
ves,sel  who  shall  be  furnished,  free  of  charge,  wdth  first-class  accommodations,  if  space 
])criiiit.s,  and  the  same  fare  as  provided  at  the  captain's  table. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  41 

21.  Lapse  of  hire. — In  the  event  of  the  loss  of  time  from  deficiency  of  men  or  stores, 
detention  by  legal  process,  fire,  explosion,  breakdown  or  damage  to  hull,  machinery, 
or  e(iuipment,  stranding,  drydocking  for  the  purpose  of  examination  or  painting  bot- 
tom, or  by  any  other  cause  preventing  the  full  working  of  the  vessel  for  more  than  24 
consecutive  hours,  the  payment  of  hire  shall  cease  for  the  time  thereby  lost,  and  if 
upon  the  voyage  the  .speed  be  reduced  by  defect  in  or  breakdown  of  any  |)art  of  her 
hull,  machinery,  or  equipment  the  time  so  lost  and  all  extra  expen.se  connected  there- 
with shall  be  deducted  from  the  hire.  There  shall,  however,  be  no  suspension  of  hire 
on  account  of  loss  of  time  arising  from  a  war  risk,  provided  that  credit  shall  be  given 
to  the  United  States  for  any  expenses  saved  by  the  owner  during  such  time. 

22.  Dry-dockin(] . — The  vessel  shall  be  dry-docked  and  her  bottom  cleaned  and 
painted  in  the  Ignited  States  whene\cr  the  United  States  and  the  master  think  neces- 
sary, but  at  least  once  in  each  eight  months,  provided  the  exigency  permits. 

23.  lAm'dation  of  liahUihj. — Throughout  the  period  of  service  under  this  "Time 
Form,"  losses  or  damages  arising  or  occasioned  by  the  following  cau.ses  shall  be  always 
excepted,  viz,  the  act  of  (Jod,  perils  of  the  seas,  fire  on  board,  in  hull,  craft,  or  on 
shore,  barratry  of  the  master  or  crew,  enemies,  pirates,  robbers  or  theives,  arrests  and 
restraints  of  princes,  rulers,  and  peoples,  collisions  and  strandings,  explosions,  bursting 
of  boilers,  breakage  of  shafts  or  any  latent  defect  (even  if  existing  at  the  beginning  of 
the  voyage)  not  discoverable  by  due  diligence,  in  the  hull,  boilers,  machinery,  or 
appurtenances,  negligence,  default  or  error  in  judgment  of  the  pilot,  master,  or  crew, 
or  either  servants  of  the  owner,  in  the  management  or  navigation  of  the  ves.se].  This 
"Time  Form"  is  subject  to  all  the  terms  and  provisions  of  and  any  or  all  the  exemp- 
tions from  liability  contained  in  the  act  of  Congress  approved  February  13,  1893. 

24.  (knr  lights. — The  owner  shall  provide  gear  for  all  ship's  derricks  and  shall  main- 
tain the  gear  of  the  vessel  as  fitted.  The  owner  shall  provide  oil  and  lanterns  for  night 
work  or  vessel  shall  give  use  of  electric  lights  when  fitted  there\vith.  The  owner  shall 
provide  ropes,  falls,  slings,  and  blocks  necessary  to  handle  ordinary  cargo. 

25.  Dai/  and  night  work-. — Oreriivu. — The  vessel  shall  work  day  and  nighit,  as  required, 
and  her  winches,  donkey  engine,  and  other  machinery  shall  be  at  the  ser\dceof  the 
1 'nited  States  by  day  and  night,  with  full  power;  whenever  po.ssible  without  additional 
expense  to  the  owner,  same  to  be  worked  free  of  cost  by  the  crew.  The  United  States 
shall  reimburse  the  owner  for  all  overtime,  provided  the  same  be  certified  by  the 
agent  or  nominee  of  the  United  States,  or,  if  no  agent  is  present,  by  the  master,  at  such 
standard  rates  as  may  be  in  force  from  time  to  time. 

26.  Alterations  and  vesseVs  condition  on  redelivery.- — -The  United  States  may  at  any 
time  remove  or  alter,  at  its  expense,  all  or  any  of  the  fittings  of  the  vessel,  and  may 
erect  any  new  fittings  which  may  be  required  to  render  the  vessel  available  for  service 
to  the  United  States:  Provided,  That  she  shall,  at  the  cost  of  the  United  States,  be 
redelivered  to  the  owner  in  the  same  or  as  good  order  and  condition  as  that  in  which 
she  was  when  delivered  to  the  United  States,  ordinary  wear  and  tear  and  damage  due 
to  the  operation  of  risks  assumed  by  the  owner  excepted,  or  just  compensation  for  the 
damage  thus  occasioned  to  the  vessel,  with  interest  at  6  per  centum  per  annum  com- 
mencing 30  days  after  the  proof  of  such  damage  upon  redelivery  of  the  vessel,  shall 
be  paid  by  the  United  States,  in  the  District  of  Columbia,  interest  not  to  be  paid, 
however,  if  the  owner  resorts  to  any  court  for  the  purpose  of  establishing  the  amount 
of  just  compensation. 

27.  Salvage. — All  derelicts  and  salvage  shall  be  for  the  equal  benefit  of  the  United 
States  and  the  owner,  after  deducting  all  expenses  incident  thereto  and  the  propor- 
tion due  to  the  master,  officers,  and  crew. 

28.  General  average. — General  average,  if  incurred,  shall,  unless  otherwise  agreed, 
be  settled  at  New  York  according  to  York-Antwerp  rules  of  1890  and  Antwerp  rule  of 
1903,  and  as  to  matters  not  covered  thereby  according  to  the  customs  and  i)ractice 
of  the  port  of  New  York. 

29.  Liens. — The  United  States  shall  have  a  lien  on  the  vessel  for  all  moneys  paid 
and  not  earned  or  due  to  the  owner  and  for  all  advances  and  overpayments  made,  and 
the  United  States  shall  have  a  lien  on  all  cargoes  and  goods  for  the  payments  of  freights 
and  charges  of  every  kind,  including  dead  freight,  demurrage,  forwarding  charges, 
charges  for  carriage  to  ])ort  of  shipment,  and  for  general  average  claims. 

30.  No  Member  of  or  Delegate  to  Congress,  or  Resident  Commi.ssioner,  nor  any 
person  employed  by  the  United  States  Ship})ing  Board  is  or  shall  be  admitted  to  any 
share  or  part  of  this  contract,  or  to  any  benefit  which  may  arise  therefrom,  but  under 
provisions  of  section  116  of  the  act  of  Congress  approved  March  4,  1909,  this  stipulation, 
so  far  as  it  relates  to  Members  of  or  Delegates  to  (,'oR>iress,  or  Resident  Commissioners, 
shall  not  extend  or  be  construed  to  extend  to  any  contract  made  with  any  incorporated 
company  for  its  general  benefit. 


42  REPORT  OF  U.  S.  SHIPPING  BOARD. 


BARE    BOAT    FORM. 


1.  Period  of  service — Vessel  to  he  completely  equipped  and  fit — Mahing  good  defects. — 
The  vessel  shall  remain  in  the  sendee  of  the  United  States  under  the  requisition 
order  to  be  employed  as  and  where  the  United  States  maj',  from  time  to  time,  deter- 
mine, and  for  sucli  period  of  time  as  the  United  States  may  determine,  but  such  period 
shall  not  extend  beyond  the  first  arrival  of  the  vessel  in  an  American  port  six  months 
after  peace  is  declared,  unless  she  shall  be  required  for  Government  purposes.  The 
vessel  may  be  towed  as  and  where  the  United  States  may  direct.  The  vessel,  w^hen 
placed  at  the  disposal  of  the  United  States,  as  directed  by  it,  shall  be  or  shall  be  made 
at  the  expense  of  the  owner  tight,  staunch,  strong,  and  well  and  sufficiently  tackled, 
appareled,  furnished,  outfitted  and  equipjicd,  and  in  every  respect  seaworthy  and 
in  good  running  order  and  condition  and  shall  be  fit  for  the  service  in  which  she  has 
u.siially  l>een  employed,  and  having  on  her  delivery  United  States  inspection  certifi- 
cate tliat  she  has  met  all  reciuirements  of  law  for  such  service.  Any  deficiency  in  these 
respects  must  be  remedied  at  the  expense  of  the  owners,  and  any  time  lost  and  any 
expense  incurred  in  remedying  such  deficiency,  either  at  the  time  of  delivery  or  at 
any  time  thereafter,  is  not  "to  be  paid  for  by  the  United  States. 

2.  Operate.— The  United  States,  at  its  sole  expense,  shall  man,  operate,  victual, 
and  supply  the  vessel. 

3.  Port  'charges. — The  United  States  shall  pay  all  port  charges,  pilotages,  and  all 
other  costs  ancl  expenses  incident  to  the  use  and  operation  of  the  vessel. 

4.  War  and  marine  risks. — The  United  States  shall  assume  war,  marine,  and  all  other 
risks  of  whatsoever  nature  or  kind,  including  all  risk  of  liability  for  damage  occasioned 
to  other  vessels,  persons,  or  pro])erf,y. 

5.  Payment  of  hire. — The  United  States  shall  pay  for  the  use  of  the  vessel  at  the 
monthly  rate  which  shall  from  time  to  time  be  established  by  the  United  States 
Shii)i)iiig  Board  for  a  sailing  vessel  of  her  description,  commencing  on  and  from  the 
hour  when  she  shall  be  ready  for  delivery  under  the  requisition  (and  is  so  reported 
to  the  Unil('(l  States)  and  at  and  after  the  same  rate  for  any  part  of  a  month,  hire  to 
continue  until  Uie  hour  at  which  the  vessel  may  be  ready  for  redelivery  at  a  United 
States  port  (and  is  so  reported  to  the  owner). 

If  the  United  States  Shipping  Board  shall  hereafter  lower  the  bare-boat  form  rate 
of  hire  from  that  in  effect  on  th(^  date  of  the  requisition,  the  owner  shall  have  the  option, 
to  be  exercised  within  five  days  after  notice,  of  canceling  this  "bare-boat  form," 
as  of  the  date  of  such  reduction,  without  prejudice  to  the  rights  of  either  party,  such 
cancellation  to  become  effective  when  vessel  is  next  in  port  and  free  of  cargo. 

Payment  of  hire  shall  be  made  in  the  District  of  Columbia,  in  cash,  monthly,  as 
earned  at  the  end  of  each  calendar  month.  If  the  vessel  is  lost,  hire  shall  be  paid  up 
to  and  including  the  date  of  her  loss  (if  the  time  of  her  loss  be  uncertain,  then  up  to 
and  including  the  date  she  is  last  heard  from). 

Dend-weighl  tonnage. — Dead-weight  capacitv  shall  be  based  on  summer  free  board 
assigned  or  to  be  assigned  with  reference  to  North  Atlantic  service,  according  to  the 
standards  of  any  recognized  classification  society,  but  sliall  not  be  deemed  to  exceed 
the  dead-weiglit  carrying  capacity  of  the  vessel  as  determined  from  actual  performances 
when  all  underwriters'  requirements  are  complied  with.  Proper  evidence  of  assign- 
ment, together  with  a  true  copy  of  tlie  dead-weiglit  scale  of  the  vessel,  shall,  if  possible, 
be  furnislied  by  tiio  owner.  Until  reasonivble  o]:»portunitv  has  been  afforded  the 
owner  to  ])rocure  such  assignment,  hm  sliall  be  paid  on  dead-weight  tonnage  as  certi- 
fied by  the  owner;  any  excess  or  (h^ficioncv  in  such  hire  to  be  siibs(K:juently  adjusted. 

6.  Classification. — A  certified  statement  from  a  recognized  classification  society  tJiat 
the  ves.sel  has  Ix^en  classed  as  fit  for  lier  usual  jjrevioua  service,  shall,  if  obtainable  at  a 
reasonable  cost,  be  furnished  by  the  owner.  So  far  as  the  exigencies  of  the  service 
will  permit,  the  United  States  shall  do  all  things  necessary  to  maintain  the  vessel's 
class. 

7.  Fuel  and  stores. — The  United  States  shall  accept  and  pay  for  all  fuel  and  consum- 
able stores  in  good  order  and  condition  on  board  at  the  time  of  vessel's  delivery  under 
the  requisition  order,  and  the  nwner  slia!^,  on  redelivery,  pay  for  all  such  su})plies  left 
on  board  at  the  furrent  market  price  at  the  respective  pons  of  delivery  and  redelivery. 
An  inventory  of  ail  such  suppli(^s  shall  be  furnished  forthwith  by  the  owner  to  the 
United  Statw  for  verification. 

8.  Outfit  and  rr/ulpmcnt . — The  United  States  shall  have  the  use  of  all  outfit,  equip- 
ment, aiui  afipliaiices  witlioiit  extra  eost,  i)rovided  same  or  their  substantial  equivalent 
shall  ))('  returned  to  the  owner  wlien  tlie  vessel  is  redelivered  in  the  same  or  as  good 
order  and  coriditinn  as  when  received,  ordinary  wear  and  tear  excepted.  An  inven- 
tfjry  of  Kueh  projxfrty  shall  be  furnished  forthwith  by  the  owner  to  the  United  States 
for  verification. 

9.  Compensation  in  event  of  loss  or  damage. — In  case  of  actual  or  constructive  total 
loss,  or  of  such  total  loss  as  is  jirovided  for  in  clause  10,  due  to  the  operation  of  a  risk 


REPORT  OF  U.  S.  SHIPPING  BOARD.  43 

assumed  by  the  United  States,  just  rompensation  for  such  loss,  with  interest  at  6  per 
cent  per  annum  commencin,!?  30  dayn  after  the  owner  shall  have  submitted  personal 
proofs  of  such  loss,  in  such  manner  as  the  United  States  Shipping  Board  may  prescribe, 
shall  be  paid  by  the  United  States  in  tlie  District  of  Columljia,  interest  not  to  be  paid, 
however,  if  tlie  owner  resorts  to  any  court  for  the  purpose  of  establishing  the  amount  of 
just  compensation;  the  United  States  Shipping  Board  shall  give  notice  to  the  owner 
of  the  loss  of  the  vessel  as  soon  as  oflicial  advices  thereof  is  received .  The  United  States 
shall,  however,  have  the  option  (to  be  exercised  within  90  days  after  the  date  of  loss) 
of  delivering  to  the  owner  witliin  a  year  after  such  loss,  in  lieu  of  such  [jaynient,  a 
vessel  of  substantially  similar  tonnage,  type,  class,  and  of  substantially  the  same  age 
(any  deficiency  in  value  to  bo  paid  for  in  cash'),  i>a>ing  interest  in  the  meanwhile  from 
the  date  of  loss  at  the  rate  of  6  per  cent  per  annum  on  the  value  of  the  lost  vessel. 

In  case  of  damage  (not  constituting  an  ar  tual  or  constructive  total  loss,  or  such  total 
loss  as  provided  for  in  clause  10,  due  to  the  operation  of  a  risk  assumed  by  the  United 
States)  the  vessel  shall,  at  the  cost  of  the  Unit(>d  States,  be  restored  to  the  owner  at 
the  expiration  of  her  service  under  the  rf'quisition,  in  the  same  or  as  good  order  and 
condition  as  that  in  which  she  was  when  di'li\-ercd  to  the  X'nitcd  States,  ordinary  wear 
and  tear  excepted,  or  just  coin])ensation  for  the  damage,  with  interest  at  6  per  cent  per 
annum,  commencing  30  davs  after  proof  of  such  damage  upon  redelivery  of  the  vessel, 
shall  be  paid  by  the  United  States  in  the  Di>  t  rict  of  Columbia,  interest  not  to  be  paid, 
however,  if  the  owner  resorts  to  any  court  for  the  purpose  of  establishing  the  amount 
of  the  just  com])ensation. 

10.  Co7islnictive  or  total  lonx  at  option  of  United  Slates. — Tf  the  vessel  sustains  serious 
damage  or  other  injury  to  th(>  extent  that  the  United  States  shall,  without  regard  to 
any  rule  of  law,  consider  her  a  total  loss,  the  United  States  shall  have  the  o])tion  (to  be 
exercised  within  90  days  thereafter)  of  declaring  the  vessel  to  be  a  total  loss  as  of  the 
date  of  the  damage,  and  of  taking  over  or  selling  her,  and  the  owner's  rights  as  to  com- 
pensation shall  be  the  same  as  provided  in  clause  9,  interest  to  commence  30  days  after 
the  date  of  the  damage. 

11.  Alteraiions  and  vesseVs  condition  on  redelivery. — The  United  States  may  at  any 
time  remove  or  alter,  at  its  expense,  all  or  any  of  the  fi  ttings  of  the  vessel  and  may  erect 
any  new  fittings  which  may  be  required  to  render  the  vessel  available  for  service  to 
the  United  States,  provided  that  the  vessel  sliall,  at  the  cost  of  the  United  States,  be 
restored  to  the  owner  at  the  expiration  of  her  service  under  the  recpiisition  in  the  same 
or  as  good  order  and  condition  as  that  in  which  she  was  delivered  to  the  United  States, 
ordinary  wear  and  tear  excepted;  or  just  compensation  for  the  damage  thus  occasioned 
to  the  vessel,  with  interest  at  6  per  cent  per  annimi,  commencing  30  days  after  the 
proof  of  such  damage  upon  redelivery  of  the  vessel,  shall  be  paid  by  the  United  States 
in  the  District  of  Columbia,  interest  not  to  be  paid ,  however,  if  the  owner  resorts  to  any 
court  for  the  purpose  of  establishing  the  amount  of  the  just  compensation. 

12.  Liens. — The  United  States  shall  have  a  lien  on  the  vessel  for  all  moneys  paid 
and  not  earned  or  due  to  the  owner  and  for  all  advances  and  overpayments  made,  and 
the  United  States  shall  have  a  lien  on  all  cargoes  and  goods  for  the  payments  of  freights 
and  charges  of  every  kind,  including  dead  freight,  demurrage,  forwarding  charges, 
charges  for  carriage  to  port  of  shipment,  and  for  general  average  claims. 

13.  No  Member  of  or  Delegate  to  Congress  or  Resident  Commissioner,  nor  any  person 
employed  by  the  United  States  Shipping  Board,  is  or  shall  be  admitted  to  any  share 
or  part  of  this  contract,  or  to  any  })enefit  which  may  arise  therefrom,  but  under  the 
provisions  of  section  116  of  the  act  of  Congress  approved  4  March,  1909,  this  stipulation 
so  far  as  it  relates  to  Members  of  or  Delegates  to  Congress  or  Resident  Commissioners, 
shall  not  extend  or  be  constriied  to  extend  to  any  contract  made  with  an  incor- 
porated company  for  its  general  benefit. 


Exhibit  N. 

[U.  S.  S.  B.  cliartcr.  Form  E.) 

United  States  Shipping  Board. 

sailing  vessel  time  charter. 

This  charter  party,  made  and  concluded  upon  in  the  District  of  Columbia  the  ■ 


day  of  — ,  1918,  between  acting  on  behalf  of  the  French  Government, 

agent  for  the  — of ,  owner  of  the  French  sailing  vessel  —- of tons 

gross  register,  and  tons  net  register,  and  classed  at  of 

tons  dead-weight  capacity,  and  the  United  States  of  America,  through  the  United 
States  Shipping  Board,  charterer. 


44  REPORT  OF  U.  S.  SHIPPING  BOARD. 

Witnesseth.  That  the  OAvner  agrees  to  let  and  the  charterer  agrees  to  hire  the  vessel 
from  tlie  time  of  delivery  until  the  termination  of  this  charter,  as  hereinafter  pro- 
vided, the  charterer  to  have  the  lil>eil\-  of  suliletting  the  v(ssel  for  all  or  any  part 
of  the  time  covered  ])y  the  charter  party,  liut  the  charterer  remaining  responsible 
for  the  fuUillnient  of  all  its  engagenients  to  the  owner  heteunder.     The  Acssel  to  be 

placed  at  the  disposal  of  the  charterer  at ,  in  such  dock  or  such  wharf  or  place 

as  may  be  directed  by  the  charterer  (where  she  may  safely  lie  afloat  at  all  times  of 
tide  or  where  it  is  customary  for  similar  siye  vessel  to  lie  safe  aground). 

1.  The  vessel  shall  remain  in  the  service  of  the  charterer  under  this  (barter  party, 
to  be  employed  as  and  where  the  charterer  may  frcm  time  to  time  deteimine.  The 
vessel,  wheii  placed  at  the  disposal  of  the  charterer,  as  directed  1  y  it.  thall  1  e  tight, 
staunch,  strong,  and  well  and  sufiiciently  tackled,  apparehd,  fullu^llcd,  outlitted, 
and  eciuipped.  and  in  every  respect  scaw(>rthy,  and  in  good  running  older  and  con- 
dition and  tit  for  service,  and  having  a  full  c(nip](m(nt,  inch  dirg  the  master, 
ollicers.  and  crew  for  a  vessel  of  lier  tonnage.  Any  deficiency  in  these  respects  must 
be  remedied  forthwith  by  and  at  the  expense  of  owner,  and  any  time  lost  in  remedy- 
ing such  deliciency  is  not  to  be  paid  for  by  the  charterer. 

2.  The  owner  shall  provide  and  pay  for  all  provisions,  wages,  bonuses,  and  con- 
sular shijiping  and  discharging  fees  of  the  master,  oflicers,  and  crew,  and  shall  pro- 
vide and  pay  for  all  cabin,  deck,  engine-room,  and  other  necessaiy  stores,  and  shall 
at  owner's  expen.sc  maintain  the  vessel  in  a  thoroughly  efluient  state  in  hull  and 
machinery,  tackle,  apparel,  fumituie.  ap])lianccs,  and  equi]  nunt  duiiiig  theservice. 

3.  Citizens  or  subjects  of  enemy  or  ally  of  enemy  nations  shall  always  be  excluded 
from  the  crew. 

4.  The  charterer  shall  provide  and  pay  for  all  fuel,  except  palley  fuel,  fresh  water 
for  donkey  boiler,  port  charges,  pilotages,  agencies,  c(  mmissicns.  1  ickeiage,  wharf- 
age, and  consular  charges  (except  these  peitaining  to  the  master,  cfl'cere,  and  crew), 
and  all  other  usual  expenses  paid  by  charterer  under  so-called  "(  oveinmcnt  form 
time  charter,"  except  as  otheiwise  provided. 

5.  The  charterer  shall  provide  the  necessary  dunnage  and  shifting  boards,  but 
the  OM'iier  shall  allow  the  charterer  the  use  of  dunnage  and  shifting  l;cards  already 
on  board  the  vessel,  the  charterer  to  have  tl:e  privilege  of  using  the  shifting  boards 
for  dunnage,  but  making  good  any  damage  thereto. 

fi.  The  vessel  to  have  leave  to  be  towed  as  and  when  charterer  may  direct. 

7.  The  charterer  shall  accept  and  pay  for  all  fuel,  except  galley  fuel  on  board  at 
the  time  or  date  of  delivery,  and  the  owTier  on  redelivery  of  the  vessel  shall  pay  for 
all  such  fuel  left  on  board  at  ■ — — —  per  ton  (2,LM0  pounds). 

8.  The  charterer  shall  have  the  use  of  all  outfit,  equipment,  and  appliances  with- 
out extra  cost,  provided  same  or  their  sulistantial  equivalent  shall  1  e  returned  to 
the  owner  when  the  vessel  is  redelivered  in  the  same  or  as  good  order  and  condition 
as  when  received,  ordinary  wear  and  tear  and  damage  due  to  the  operation  of  risks 
a.ssumed  by  the  owner  excepted.  An  inventory  of  such  propertj^  shall  lie  furnisl.ed 
forthwith  bj'  the  owner  to  the  cbarterer  for  verification. 

9.  The  charterer  shall  pay  for  tbe  use  of  the  vessel  at  the  monthly  rate  wbich  shall 
from  time  to  time  be  established  by  tbe  I'nited  Stales  Fbi]  ]ung  Boaid  for  a  vessel 
of  her  description,  commencing  on  and  from  the  hour  that  she  shall  be  ready  for 
delivery  (aiul  is  so  reported  to  the  I'nited  States)  and  at  and  after  th(>  same  rate  for 
any  part  of  a  month,  hire  to  continue  until  the  hour  at  wbich  the  vessel  may  be  ready 
for  redelivery  at  a  United  States  port  (and  is  so  reported  to  the  owner).  I'ntil  further 
notice  .suc:h  monthly  rate  shall  be per  ton  on  the  vessel's  dead-weight  capacity. 

If  the  I'nited  States  Sbipping  Hoard  shall  hereafter  lower  the  rate  of  hire,  the 
owner  shall  liave  tbe  option  of  canceling  tins  charter  party  as  of  the  date  of  such 
reduction,  williout  prejudice  to  the  rights  of  either  party. 

Payment  of  hire  sball  be  made  in  tbe  District  of  Columbia,  in  cash,  monthly,  in 
advance,  on  tbe  lirst  of  each  calendar  nioiitb.  if  the  vessel  is  lost,  hire  sball  be  paid 
up  to  and  including  the  date  of  her  loss  (if  the  time  of  her  loss  be  uncertain,  then 
up  to  and  including  the  date  she  is  last  heard  from). 

Should  the  vessel  bo  on  her  voyage  toward  the  port  of  redelivery  at  the  time  a 
payment  of  hire  becomes  due,  said  payment  shall  be  made  for  such  length  of  time  as 
the  owner  and  charterer  or  their  agents  may  agree  upon  as  the  estimatecl  time  nec- 
essary to  complete  the  voyage,  and  when  the  vessel  is  redelivered  to  owner  any 
difference  shall  be  refunded  by  owner  or  paid  by  the  charterer,  as  the  case  may 
require. 

10.  The  owner  shall  assume  the  marine  ri.sks,  including  collision  liabilities  ('except- 
ing losses  and  liabilities  arising  from  war  risks).  The  cbarterer  shall  assume  war 
risks  (including  collision  liabilities),  as  excluded  by  the  following  clause  in  the 
American    hull    policy,    I'JKi    form:  "Warranted    free   of    capture,    seizure,   arrest. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  45 

restraint,  or  detainmriit,  or  Iho  consfqiicnre  tlioronf,  or  of  any  atfrmpt  thereat 
(piracy  excepted  ),  and  also  from  all  eimscciucnees  of  hostilities  or  warlike  operations, 
whctlier  before  or  after  declaralicn  of  war.'' 

The  owner  sliall  insure  ai^ainst  the  usual  protection  and  indemnity  risks  for  the 
full  protection  of  the  owner  and  chailerer,  Ihe  expeni-c  thereof  to  he  home  50  per 
cent  by  the  owner  aiid  HO  per  cent  by  ihe  charterer. 

11.  In  case  of  loss  or  damage  due  to  the  operation  of  a  risk  assiimed  by  iJie  charterer, 
compensation  for  the  loss  or  damage  shall  be  paid  by  the  United  States  in  the  District 
of  ("olumbia,  upon  due  proof  of  such  loss  or  damage. 

12.  If  the  vessel  sustains  serious  damasre  or  other  injury  arisiu'j:  from  the  operation 
of  a  risk  assumed  by  the  charterer,  to  such  extent  that  the  charterer  sliall.  without 
regard  to  any  rule  of  law,  consid(>r  lier  a  total  loss,  tlie  charterer  shall  ha\  e  the  ojition 
(to  be  exorcised  witliin  90  days  thereafter)  of  declarin.tr  the  vessel  to  I'e  a  total  loss  as 
of  the  (Uxte  of  tlio  damage  and  of  taking  oa  er  or  selling  her,  and  the  owner's  right  as  to 
compensation  shall  be  tlie  same  as  pro\  ided  in  clause  1 1. 

13.  The  whole  reach  of  the  yessel's  holds,  docks,  and  other  jdaces  of  loading  and 
accommodations  (not  to  be  loaded  beyond  what  she  can  reasonably  stow  or  carry) 
shall  be  at  the  disposal  of  the  charterer,  reserving  only  pro])er  and  sufhcient  space  for 
sJiip's  oflicers,  crew,  tackle,  ajiparel,  furniture,  j)roAisions,  stores,  and  fuel. 

N.  The  master  shall  prosecute  his  voj'ages  with  the  utmost  dispati'h,  shall  render 
all  customary  assistance  with  shii)'s  crew  and  l)oats,  including  handling  of  cargo  at 
such  ports  where  it  is  customary,  and  use  all  diligence  in  caring  for  ventilation  of  the 
cargo.  The  master  shall  be  under  the  orders  and  directions  of  the  charterer  or  its 
nominees  as  re^^ards  employment  or  agencj'.  The  charterer  shall  load,  stow,  and 
tiim  the  cargo  at  its  own  expense  under  the  superxision  of  the  master,  who  is  to  gign 
bills  of  lading  for  cargoes  as  presented,  without  prejudice  to  any  terms  or  proAision 
of  this  charter  party,  and  the  charterer  hereby  agrees  to  indemnify  the  owner  from 
all  conseciuences  or  liabilities  that  may  arise  from  the  master's  signing  bills  of  lading 
or  otherwise  complying  with  the  orders  and  directions  of  the  charterer. 

1").  'J'he  master  shall  o))ey  all  orders  and  instructions  which  he  may  recei-\e  from 
vlie  charterer  or  fi'om  any  of  its  noniinees,  and  shall  in  all  resjjects  comply  with  any 
confidential  instructions  for  masters  which  may  be  issued  by  the  charterer,  but  he 
shall  be  th.e  agent  of  the  owner  in  all  matters  respecting  the  management,  handling, 
and  na\  igation  of  the  vessel. 

16.  The  charterer  shall  fiu'nish  the  master  from  time  to  time  with  all  requisite 
ihstTTictions  and  sailing  directions,  and  the  master  shall  keep  a  full  and  complete 
log  of  each  a  oyage,  which  is  to  be  patent  to  the  charterer  at  any  time,  and  in  addition 
the  master  shall  furnish  de<'k  and  engine  abstracts. 

17.  if  the  charterer  shall  haAO  reason  to  be  dissatisfied  with  the  conduct  of  the 
master,  officers,  or  any  member  of  the  crew,  the  owner  shall,  on  recei\  ing  particulars 
of  com])laint,  inAestigate  the  same,  and,  if  necessary,  make  a  change  in  the  appoint- 
ments. 

IS.  The  charterer  may  appoint  a  rei)resentatiA  e  to  accompany  the  vessel  who  shall 
be  finnished,  free  of  charge,  with  proper  accommodations  and  the  same  fare  as  pro- 
vided at  the  master's  table. 

19.  In  the  eA'ent  of  loss  of  time  from  deficiency  of  men  or  stores,  fire,  explosions, 
breakdown,  or  damages  to  hull,  appliant  I's,  or  equipment,  grounding,  detention  by 
average  accidents  to  ship  or  cargo,  dry-docking  for  the  purpose  of  examination  or 
painting  bottom,  preventing  the  operation  of  tlie  vessel,  the  payment  of  hire  shall 
cease  for  the  time  thereby  lost. 

20.  The  A  essel  shall  (at  owner's  expense)  be  dry-docked  and  her  bottom  cleaned 
and  painted  whenever  necessary  but  at  least  once  in  each  six  months,  i)rovided  the 
exigency  permits. 

21.  Cash  for  master's  ordinary  disbursements  at  any  port  shall  be  advanced  for 
ship's  account  by  charterer,  if  required,  and  such  advances  may  be  deducted  from 
the  hire  ujion  ])resentation  of  proper  Aouchoi's. 

22.  The  act  of  God,  eu'^mies,  fire,  explosions,  restraint  of  princes,  rulers,  and  people, 
and  all  dangers  and  accidents  of  the  seas,  rivers,  machinery,  boilers,  and  steam  navi- 
gation, and  errors  of  navigation  throughout  this  charter  party  always  mutually 
excepted. 

This  charter  party  shall  be  subject  to  all  the  terms  and  conditions  of  and  any  or  all 
exemptions  from  lial)ility  contained  in  the  act  of  Congress  appro\  ed  February  13,  1893. 

23.  The  owner  shall  provide  gear  for  all  ship's  derricks  and  shall  maintain  the  gear 
of  the  vessel  as  fitted.  The  owner  shall  proA  ide  oil  and  lanterns  for  night  work.  The 
owner  shall  provide  ropes,  falls,  slings,  and  blocks  necessary  to  handle  ordinary  cargo. 

24.  The  vessel  shall  work  day  and  night,  as  required,  and  the  winches  and  donkey 
engines,  if  AOssel  is  pro\ided  with  same,  shall  be  at  the  service  of  the  charterer  by 
day  and  night,  with  full  steam. 


46  EEPOET  OF  U.  S.  SHIPPING  BOARD. 

The  charterer  shall  reimburse  the  oMner  for  all  overtime  as  certified  by  the  char- 
terer's at:ent  or,  if  no  a»ent  is  present,  by  the  master,  at  such  standard  rates  as  may  be 
in  force  from  time  to  time.  ,   ,       ,  ,  ^i, 

25.  All  derelicts  and  salva,2e  shall  be  for  the  equal  benefit  of  the  cnarterer  and  the 
owner  after  deducting  all  expenses  incident  thereto  and  the  proportion  due  to  the 
master,  officers,  and  crew. 

26.  Should  the  aosscI  put  into  a  port  of  distress  or  be  under  average,  she  is  to  be 
consigned  to  charterer  or  its  agents,  paying  the  usual  charges  and  commissions  therefor, 
and  in  case  a  [general  average  statement  be  required  the  same  is  to  be  adjusted  at 
New  York  by  adjusters,  to  be  appointed  by  charterer,  who  are  to  attend  to  the  settle- 
ment and  collection  of  the  average  subject  to  customary  charges,  general  average, 
if  any,  to  be  adjusted  according  to  York- Antwerp  rules  of  1890;  and  as  to  matters  not 
therein  pro%  ided  for,  according  to  the  usages  and  customs  of  the  port  of  New  York. 

27.  If  the  owner  of  the  vessel  shall  have  exercised  due  diligence  to  make  the  vessel 
in"all  respects  seaworthy  and  properly  manned,  equipped,  and  supplied,  it  is  hereby 
atrreed  that  in  case  of  loss  or  damage  residting  from  fault  or  negligence  of  the  pilot, 
inaster,  or  crew,  in  the  navigation  or  management  of  the  vessel,  or  from  latent  or  other 
defects,  or  unseaworthinessof  the  vessel,  whether  existing  at  time  of  shipment  or  at 
the  beginning  of  the  voyage  but  not  discoverable  by  due  diligence,  the  consignees 
or  owner  of  the  cargo  shall  not  be  exempted  from  liability  for  contribution  in 
tieneral  aA  erage  or  for  any  special  charges  incurred,  but,  with  the  shipowner,  shall 
contribute  in  general  average  and  shall  pay  such  special  charges  as  if  such  loss  or 
damage  had  not  resulted  from  such  fault,  negligence,  latent  or  other  defect,  or  unsea- 
worthiness. 

2S.  The  charferer  shall  have  a  lien  on  the  vessel  for  all  moneys  paid  and  not  earned 
or  due  to  the  owner  and  for  all  advances  and  o\er])ayments  made,  and  the  charterer 
shall  haA-e  a  lion  on  all  cargoes  and  goods  for  the  payment  of  freights  and  charges, 
including  dead  freight,  demurrage,  forwarding  charges,  charges  for  carriage  to  port  of 
shipment,  and  for  general  average  claims. 

29.  U]>on  giving  thirty  days'  written  notice,  either  party  shall  have  the  right  to 
terminate  this  charter  party  "at  any  time,  when  the  vessel  is  at  a  United  States  port, 
without  prejudice  to  the  accrued  rights  of  either  jiarty. 

80.  Any  dispute  of  law  or  fact  arising  under  this  charter  party  shall  be  referred  to 
the  arbitration  of  three  persons,  one  appointed  by  the  owner,  one  by  the  charterer, 
and  the  third  by  the  two  so  chosen.  They  may  proceed  in  any  manner  determined  by 
themselves,  and  their  decision,  or  that  of  any  two  of  them,  shall  be  final,  and  for  the 
puriwse  of  enforcing  any  award  hereunder  the  agreement  may  be  made  a  rule  of  court. 
Such  arbitration  .^^hall  be  a  condition  precedent  to  the  commencement  of  any  action. 

,   Owner. 


Witness  to  the  signature  of — 


Witness  to  the  signature  of — 


By ,   Agent  for  Owner. 

United   States   Shipping   Board, 

By ,  Director  of  Operations. 


Exhibit  O. 

United  State.s  Shipping  Board  Emergency  Fleet  Corporation — Tugboat  Man- 
aging  and  operating  agreement. 

This  managing  and  operating  agt'cement.  made  this  day  of  — ■ — — ■,  by  and 

between  the  United  States  Shipping  Board  Emergency  Fleet  Corporation,  the  first 
party,  hereinafter  called  the  corporation,  and ,  of ,  the  second  i)arty,  here- 
inafter called  the  manager,  witnesseth: 

Whereas  the  corporation  is  operating  the  tugboat and  certain  other  tugboats 

and  desires  to  make  an  agency  contract  with  the  manager  for  the  husbanding,  man- 
aging, and  operating  of  said  vessel  and  such  other  ves.sels  as  it  has  assigned  and  may 
a.«,«ign  to  the  manager  for  such  purposes; 

-Now.  therefore,  it  is  agreed  as  follows: 

Mrst.  The  corporation  hereby  appoints  the  manager  as  its  agent  for  the  husbanding, 
managing,  and  operating  of  the  tugboat and  of  such  other  vessels  as  the  corpora- 
tion has  assigned,  and  may  from  time  to  time  assign,  to  the  manager  for  such  purpose. 

Second.  The  manager,  as  such  agent — 

(a)  Shall  take  proper  delivery  of  the  ves.sel  from  the  Operation  or  Construction 
Division  of  the  corporation,  or  from  the  owner,  builder,  or  anyone  else  having  control, 
as  the  corporation  may  direct. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  47 

(h)  Rliall  act  as  the  manager  and  operator  of  tlio  vey.sel  in  such  trade  or  service  as 
the  corporation  shall  direct,  being  subject  to  the  orders  of  the  corporation  as  to  voyages, 
tows,  ]iriorities,  charters,  rates  of  towage,  and  other  charges,'  and  as  to  all  matter? 
connected  with  the  use  of  the  vessel. 

((•)  Shall  exercise  due  diligence  to  man,  equip,  victual,  8U])))ly,  and  operate  the 
vessel,  and  to  provide  and  pay  for  all  provisions,  wages,  and  cojisular.  shii)i)ing,  and 
discharging  fees  of  the  master,  ofilcers,  and  crew;  all  cabin,  deck,  engine  room,  and 
other  necessary  stores;  all  fuel,  fresh  water,  port  charges,  pilotages,  agencies,  commLs- 
sions,  and  consular  charges;  and  all  other  costs  ajid  expenses  (except  those  expenses 
to  be  paid  by  the  manager  out  of  his  owji  funds  covered  by  the  compensation  and  fees 
hereafter  j)rovided  for)  ])roperly  incident  to  the  management  and  operation  of  the 
vessel,  including  war-risk  insurajice,  if  any,  required  by  law  on  the  master,  officers, 
and  crew. 

{d)  Shall  exercise  due  diligence  to  maintain  the  vessel  in  a  thoroughly  efficient 
stale  in  hull,  machinery,  tackle,  api)arel,  furniture,  and  equi))nK'nt,  procuring  for 
and  on  behalf  of  tlio  cor]ioratiou  the  necessary  labor  and  material  to  effect  ordinary 
running  repairs  aud  rej)lacenients.  No  extraordinary  repairs  or  expenses  shall  be 
made  or  incurred,  and  no  alteration  in  hidl,  machinery,  or  equipment  shall  be  made, 
by  the  manager,  except  in  serious  emergency,  without  first  securing  in  writing  the 
authorization  of  tli(;  corporation. 

(e)  Shall  exercise  due  diligence  to  see  that  no  damage  to  the  vessel  arises  from 
careless  or  improper  use,  handling,  or  berthing  of  the  vessel. 

(/)  Shall  execute  in  customary  form  such  towage  and  other  contracts  as  may  be 
directed  or  authorized  by  the  corporation. 

(g)  Shall  collect  all  towage  charges  and  other  moneys  due  or  payable  to  the  cor- 
poration for  the  use  of  the  vessel  or  in  any  way  connected  therewith;  and  shall  in 
proj^er  cases  take  steps  to  obtain  adeqiuite  security  to  cover  claims  of  the  cori)oration 
in  general  aA'erage  or  otherwise  against  any  persons,  or  vessels  or  other  property. 

(h)  Shall  hold  all  moneys  collected  on  behalf  of  the  corporation,  and  shall  deposit 
the  same  in  national  banks,  or  banks  which  are  members  of  the  United  States  Federal 

Reserve  Association,  as  a  separate  trust  fund  to  be  designated  " — ,  Shipping 

Board  fund."  and  shall  not  mingle  the  same  ■with  other  moneys  owned  or  held  by  the 
manager,  and  shall  make  from  such  funds  all  disbursements  hereinafter  authorized  to 
be  paid  by  or  to  the  manager  for  account  of  the  corporation,  and  shall,  promptly  after 
the  dispatch  of  each  vessel,  or  at  such  other  times  as  may  be  directed,  account  to  the 
corporation  for  moneys  received  and  disbursed.  No  items  not  supported  by  vouchers 
aggregating  more  than  $10  will  be  allowed. 

(i)  Shall  keep  separate  accounts  in  such  manner  and  form  as  may  be  prescribed  by 
the  corporation  of  all  moneys  collected  and  disbursed,  and  accord  to  accountants  and 
other  representatives  of  the  corporation  access  to  all  books  and  papers,  and  render 
such  assistance  in  the  examination  thereof  as  the  corporation  may  require. 

(;')  Shall  exercise  due  diligence  to  do  or  cause  to  be  done  all  things  which  are  cus- 
tomarily done  by  the  owner,  or  the  owner's  agent,  of  similar  vessels,  attending  to  all 
matters  in  connection  vnth  the  management  and  operation  of  the  vessel. 

Third.  The  corjjoration,  in  consideration  of  the  services  or  things  herein  agreed  to 
be  performed,  shall  pay  compensation  and  allow  commissions  as  follows: 

A.    COMPENSATION    FOR    MANAGEMENT. 

For  each  vessel,  $350  per  month,  and  at  the  same  rate  for  each  part  of  a  month. 
Siich  compensation  shall  be  payable  to  the  manager  from  the  day  of  delivery  of 
each  vessel  to  the  manager  until  redelivery  or  loss. 

B.    OPERATING    COMMISSION. 

For  all  towacre  and  charter  hire  scnired  and/or  collected  by  the  manasrer  and  author- 
ized by  the  corpf>ration,  a  romm.ission  of  2^  per  cent  shall  be  paid  the  manager  by  the 
corporation  on  the  gross  amount  collected. 

C.    COMMISSIONS   FOR   ADVANCING   FUNDS. 

If  the  manager  is  without  funds  of  the  corporation,  either  as  the  manager  or  as  the 
operator,  for  the  disbursement  of  the  vessel  in  foreign  or  dependency  ports,  and  funds 
are  there  advanced  by  the  manager,  or  procured  from  others,  a  commission  will  be 
allowed  in  accordance  with  the  usual  commissions  paid  in  the  respective  ports,  as 
certified  to  the  United  States  Shipping  Board  by  the  American  Steamship  Association 
and  verified  by  the  comptroller. 


48  REPORT  OF  U.  S.  SHIPPING  BOARD. 

Fourth.  WTiciiPver  the  corporation  may  legally  have  the  advantage  of  any  existing 
or  future  contracts  of  the  manager  for  the  purcha'^e  of  material,  fuel,  supplies,  or 
equijunent.  it  .<hall  have  the  lioucfit  thereof,  provided  tliat  such  contracts  may  be 
made  available  t<>  the  corporation  without  unreasonably  interfering  \\-ith  the  require- 
ments of  other  ^  ossels  owned  or  ojierated  by  the  manager. 

Fifth.  The  corporation  shall  ]>romptly  reimburse  the  manager  for  all  disbursements 
projierly  incurred  on  it,s  liehalf  as  authorized  in  this  agreement. 

Sixth.  All  salvaties  shall  lie  for  the  benefit  of  the  corporation.  This  provision, 
however,  shall  not  he  construed  to  deprive  the  manager  of  any  right  to  salvage  reserved 
to  the  manaeer  as  vessel  owner  under  any  charter. 

Seventh.  The  corporation  shall  have  the  right,  at  any  time,  to  terminate  this  agree- 
ment as  to  any  or  all  vessels  assigned  to  tlie  manager,  and  to  assume  forthwnth  control 
of  any  or  all  of  the  vessels,  and  to  collect  directly  all  freights,  moneys,  or  other  charges 
remaining  unpaid.  The  manager,  however,  in  such  case  shall  adjust,  settle,  and  liqui- 
date the  i-urrent  l)usiness  of  the  vessels  if  so  required  hy  the  corporation. 

Eighth.  Upon  giving  the  coriioration  30  days'  ^vritten  notice,  the  manager  shall 
have"^the  risht  to  terminate  this  agreement,  such  termination  not  to  liecome  effective 
ai^  to  any  vessel  until  its  arrival  at  a  United  States  port.  The  manager  shall,  however, 
if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the  current  business  of 
the  vessel. 

Ninth.  The  manager  shall,  at  the  time  of  execution  and  delivery  of  this  agreement, 
or  at  any  other  time,  if  so  rerpiired  by  the  corporation,  fm-nish  a  satisfactory  bond  in 
such  amount  as  the  corporation  may  order,  for  the  faithful  and  proper  discharge  of  the 
obligations  and  duties  hereunder  assumed. 

Tenth.  This  agreement  shall  apply  to  the  management  of  all  vessels  assigned  to 
the  manager,  sailing  from  United  States  ports  on  or  after  the  1st  day  of  February,  1919, 

United  States  Shipping  Board 
Emergency  Fleet  Corporation. 


Witness  as  to  signature: 


Witness  as  to  signature: 


By ,  Director  of  Opcralioiis. 

By ,  The  Manager. 


Exhibit  P, 

United  States    Shipping    Board    Emergency   Fleet    Corporation — Operating 

Agreement. 

This  agreement  made  this da\'  of by  and  between  the  United  States 

Shipping  Hoard  Emergency  Fleet  Corporation,  party  of  the  first  part,  hereinafter  called 

the  corporation,  and of ,  party  of  the  second  part,  hereinafter  called  the 

agent,  witnesseth: 

Whereas,  the  corporation  is  operating  the  vessel  and  certain  other  vessels 

and  desires  to  make  a  contract  of  agency  with  the  agent  for  the  conduct  of  the  business 
of  said  vessel  and  such  other  vessels  as  it  has  assigned  and  may  assign  to  the  agent 
for  sucli  purposes. 

Now,  therefore,  it  is  agreed  as  follows: 

First.  The  corporation  herel)y  appoints  the  agent  as  its  agent  for  the  operation  of 

the  vessel and  such  other  vessels  as  the  corporation  has  assigned  and  may  from 

time  to  time  assign  to  the  agent  for  such  purpose. 

Second.  The  corporation  will  provide  and  pay  for  all  provisions,  wages,  and  consular 
shipping  and  discharging  fees  of  the  master,  officers,  and  crew;  and  for  all  the  cabin, 
deck,  engine  room,  and  other  necessary  stores;  and  will  maintain  the  vessel  in  a 
thoroughly  cMicient  state  in  hull,  machinery,  and  equipment,  for  and  during  service. 

Third.  The  agent — 

(a)  Shall  act  as  such  agent  and  operate  the  vessels  in  such  trade  or  service  as  the 
corporation  shall  from  time  to  time  direct,  the  agent  being  at  all  times  subject  to  the 
orders  of  the  cor])oration  as  to  voyages,  cargoes,  priorities  of  cargoes,  charters,  rates  of 
freight  and  other  charges,  and  as  to  any  and  all  matters  arising  out  of  or  connected 
with  the  use  of  the  vessels. 

(6)  Shall,  as  agent  for  the  corporation,  provide  and  pay  for  all  the  fuel,  fresh  water, 
stevedoring,  port  charges,  pilotages,  agencies,  commissions,  consular  charges,  except 
those  pertaining  to  the  master,  odicers,  and  crew,  and  all  other  expenses  which  are 
usually  borne  by  a  time  charterer  of  a  vessel. 


REPORT   OF   U.   S.   SIlirPING   BOARD.  49 

(c)  Shall  exercise  due  (iiiigence  to  see  that  all  freight  is  prepaid,  excej^t  when  other- 
wise instructed  by  the  corporation,  or  wliere  the  prevailing  customs  under  the  ])ar- 
ticular  circumstances  of  the  8i)ecific  vo\ag(^  ami  trade  from  a  foreign  or  dr'])eiidency 
port  are  to  the  contrary,  in  which  case  freight  may  be  made  payable  at  deslinalion  in 
accordance  with  the  usual  practice.  All  freight  in  cases  where  cargo  is  i)erishal)le  or 
not  worth  the  freight  charges  must  be  pre]>aid. 

(d)  Shall  issue  or  caused  to  be  issued  to  shippers,  without  prejudice  to  the  terms  of 
the  charier  party  covering  any  vessel  o])erate(i  liereunder,  customary  freight  contracts 
and  bills  of  lading,  and  shall  exercis(!  due  diligence  to  see  that  such  documents  con- 
tain all  exem])tions  and  stipulations  usual  to  the  particular  trade  or  service  in  which  the 
vessel  may  be  engaged,  ami  reserve  to  the  coii)oration  a  lien  upon  all  cargoes  for  the  pay- 
ment of  freight,  primage  charges,  dead  freiglit,  demurrage,  forwarding  charges,  advance 
charges  for  carriage  to  port  of  shi]iment,  for  contributions  in  general  average  and 
special  charges  on  cargo,  and  for  all  Hues  or  damages  which  the  vessel  or  cargoes  may 
incur  by  reason  of  illegal,  incorrect,  or  insufficient  marking  or  addressing  of  packages, 
or  descrijition  of  their  contents,  and  make  the  shipments  subject  to  customary  war 
clauses,  to  the  act  of  Congress  of  February  ]?,,  J<S98,  know'n  as  the  Ilarter  Act,  and  to  a 
provision  that  all  general  average  shall  be  settled,  unless  otherwise  directed  by  the 
corporation,  at  New  York  in  accordance  with  York-Antwerp  ndes  of  1800,  and  Ant- 
werp rule  of  1!)08,  and  where  they  are  not  suflicient  in  accordance  with  the  ndes  and 
customs  in  such  matters  at  the  port  of  New  York,  and  also  subject  to  the  following 
clause: 

"If  the  owner  of  the  ship  shall  have  exercised  due  diligence  to  make  said  ship  in 
all  respects  seaworthy  and  i)ro])erly  manned,  equipped,  and  supplied,  it  is  hereby 
agreed  that  in  case  of  loss,  damage,  danger,  or  disaster  resulting  from  fault  or  negli- 
gence of  the  pilot,  master,  or  crew,  in  the  navigation  or  management  of  the  ship,  or 
from  latent  or  other  defects  or  unseaworthiness  of  the  ship,  whether  existing  at  the 
time  of  shipment,  or  at  the  beginning  of  the  voyage,  or  on  the  voyage,  but  not  dis- 
coverable by  due  diligence,  the  ov/ner  shall  not  be  liable  therefor,  and  the  consignee 
or  owners  of  the  cargo  shall  not  be  exempt  from  liability  for  contribution  in  general 
average,  or  for  any  special  charges  incurred,  but  with  the  shipowner  shall  contribute 
in  general  average  and  shall  ])ay  such  s]iecial  charges  as  if  such  loss,  damage,  danger, 
or  disaster  had  not  resulted  from  such  fault,  negligence,  latent  or  other  defect,  or 
unseaworthiness." 

(e)  Shall  collect  all  freights  and  other  money  due  the  corporation,  advance  all 
funds  for  all  expenses  pro]K'rly  to  be  ]>aid  by  him  as  agent  for  the  vessel  other  than 
requisition  hire,  and  take  ])roper  general  average  security. 

(/)  Shall  hold  all  money  collected  on  behalf  of  the  corporation,  and  shall  de])osit 
the  same  in  national  banks,  or  banks  which  are  members  of  the  United  States  Federal 

Reserve  Association,  as  a  se]uirate  trust  fund,  to  be  designated  " Ship]>ing 

Board  fund,"  and  shall  not  mingle  the  same  with  other  moneys  owned  or  held  by  the 
agent,  and  shall  make  from  such  funds  all  disbursements  hereinafter  authorized  to  be 
paid  by  the  agent  for  account  of  the  corporation  to  others  than  the  agent. 

(g)  Shall  keep  separate  accounts  in  such  a  manner  and  form  as  may  be  pres'^ribed 
by  the  corporation  of  all  mone>s  collected  and  disbursed,  and  accord  to  accountants 
and  other  representatives  of  the  corporation  access  to  all  books  and  papers,  and  render 
such  assistance  in  the  examination  thereof  as  the  corporation  may  require. 

(h)  Shall  promptly  after  the  dispatch  of  each  vessel,  or  at  such  other  time  or  times 
as  may  be  directed,  account  to  the  corporation  for  all  moneys  collected  on  its  behalf, 
and,  with  sujtporting  vouchers,  account  for  all  disbursements  reasonably  and  properly 
made  on  behalf  of  the  corporation  as  in  this  agreement  authorized.  No  items  unsup- 
ported by  ^^oucher8  will  be  allowed  which  in  the  aggregate  exceed  $10. 

(i)  Shall,  in  order  to  prevent  speculation  in  freight  or  passenger  space,  exercise  due 
diligence  to  see  that  all  freight  contracts  show  the  name  of  actual  shipper,  commodities, 
quantities,  and  freight  rates,  except  that  in  coastwise  trade  of  the  United  States  and 
in  the  West  Indies  trade  the  freight  rate  need  not  be  shown  on  permits,  but  must  be 
shown  on  the  bills  of  lading  and  must  be  the  rate  in  current  tariffs;  and  no  space 
allotted  to  the  original  shipper  may  be  sublet  on  any  terms  or  conditions  whatsoever 
without  the  consent  of  the  corporation.  If  the  agent  shall  knowingly  carry  any  cargo 
without  the  consent  of  the  corporation,  the  space  for  which  has  been  sublet  by  the 
original  shipper  upon  any  terms  or  conditions  whatsoever,  the  agent  shall  receive  no 
commission,  fee,  or  other  compensation  for  any  services  rendered  as  the  operator  of 
the  vessel  during  the  voyage. 

(i)  shall  exercise  due  diligence  to  see  that  all  bills  of  lading  when  iasued  agree 
with  the  freight  (Contracts,  that  all  wharf  receipts  for  freight  are  nonnegotiable,  and 
that  a  freight  contract  or  permit  is  issued  for  each  sliipmeut, 

52880°— S.  Doc.  38,  G7-1 i 


50  REPOET  or  U.  S.  SHIPPING  BOARD. 

(1-)  Shall  exercise  due  diligence  to  perform  or  cause  to  be  performed  all  of  the 
customar\'  agency  duties  concerned  with  loading  and  discharging  cargoes  at  all  ports 
included  in  the  vesscrs  itinerary,  and  do  or  cause  to  be  done  all  things  necessary  for 
tlio  protection  and  safeguarding  of  the  interests  of  the  corporation. 

P\)urth.  The  corporation,  in  consideration  of  the  ser\aces  or  things  agreed  to  be 
performed  hereunder  by  or  through  the  agent,  shall  pay  the  agent  compensation 
and  allow  payment  of  compensation  to  others  in  accordance  with  the  schedules  which 
shall  fi"om  time  to  time  be  established  by  the  United  States  8hi])]Hng  Board.  Until 
further  notice  compensation  shall  be  allowed  and  paid  as  herein  below  provided. 

A.    COMMISSIONS    AND    FEES    PAYABLE    TO    THE    AGENT. 

I.  On  nil  vessels  c.rrcpt  tnnlrrs. — {a)  P'rom  United  States  ports:  As  soon  as  possilde 
after  dispatching  any  vessel  from  any  United  States  jiort,  the  agent  shall  forward  to 
the  cor])oration  a  freight  list  showing  the  number  of  revenue  tons  of  cargo  carried 
and  tile  total  amount  of  freight  money,  and  a  commission  to  the  agent  based  on  the 
average  rate  of  freight  will  be  allowed  on  the  total  freight  list  as  follows: 

(1)  On  general  cargo:  2}  per  cent  on  average  freight  rate  of  $5  or  less  per  ton;  2\ 
per  cent  on  average  freight  rate  of  $5.01  to  $10  per  ton;  2  per  cent  on  average  freight 
rate  of  $10.01  to  $20  per  ton;  li  per  cent  on  average  freight  rate  of  $20.01  to  $40  per 
ton;  IJ  per  cent  on  average  freight  rate  of  $40.01  to  $G0  per  ton;  1^  per  cent  on  average 
freight' rate  of  $()0.01  to  $80  per  ton;  1  per  cent  on  average  freight  rate  of  $80.01  to 
$100  per  ton;  \  per  cent  on  average  freight  rate  of  $100.01  or  over  per  ton. 

(2)  On  bulk'cargo  the  rate  of  commission  shall  be  one-half  of  the  above  rates. 

The  term  "bulk  cargo "  as  used  in  this  agremeent  shall  include  a  cargo,  a  substantial 
part  (amounting  to  50  per  cent  or  more)  of  which  is  loaded  at  one  port  and  discharged 
at  one  port,  when  covered  by  one  bill  of  lading,  and  delivery  is  made  without  regard 
to  marks  or  numbers.  WTienever  the  excess  over  such  substantial  part  is  general 
cargo  the  commission  payable  on  general  cargo  as  above  shall  be  paid  on  the  freight 
earnings  on  such  excess. 

The  term  "bulk  cargo"  as  used  in  this  agi'eement  shall  include  all  United  States 
Government  cargoes,  Avhen  vessel  is  exclusively  laden  therewith.  Where  Govern- 
ment cargoes  are  carried  and  no  charge  or  a  nominal  charge  is  made  therefor,  the  com- 
missions and  fees  shall  be  based  upon  a  freight  schedule  established  in  each  case  by 
the  United  States  Shipping  Board  for  such  purpose. 

(h)  Into  United  States  ports  from  foreign  and  dependency  ports,  a  fee  of  $250  for 
each  vessel,  on  general  and  bulk  cargo,  will  be  allowed. 

Th(^  term  "dependency  ports"  as  used  in  this  agreement  shall  include  ports  in  the 
Hawaiian  Islands,  Porto  Rico,  the  Virgin  Islands,  Guam,  the  Canal  Zone,  the  Pliilip- 
pine  Islands,  and  Alaska. 

(c)  l-'rom  or  into  the  United  States  ports,  one  commission  of  5  per  cent  on  all  mails, 
express,  and  commercial  passenger  revenue  will  be  allowed.     This  commission  is 
also  to  cover  all  agency  commissions  and  fees  paid  in  foreign  or  dependency  ports, 
except  the  brokerages  authorized  to  be  paid  under  C-II  below. 

II.  On  tankers. — Between  United  States  ports  and  foreign  and  dependency  ports,  a 
fee  of  $100  for  each  vessel  will  be  allowed. 

B.  P.WMENTS  BY  THE  ACENT  FOR  UNLO.\DING,  LOADING,  AND  ATTENDANCE  COMMIS- 
SIONS, AND  FEES  PAID  TO  OTHERS  THAN  THE  AGENT  AT  FOREIGN  AND  DEPENDENCY 
PORTS. 

I.  On  all  vessels,  inehirling  tankers. — (a)  A  commission  or  fee  not  exceeding  the 
lowest  customary  commission  or  fee  prevailing  under  the  particular  circumstances  of 
the  specilic  voyage  and  trade;  provided  that  any  commission  or  fee  ])aid  for  attending 
to  any  mail,  express,  or  commercial  passenger  revenues  shall  be  borne  by  the  agent 
out  of  the  commission  allowed  him  under  A-I(r),  supra,  except  the  brokerages  au- 
thorized to  be  paid  under  ('-I I  below. 

In  Meditorranean  ports  a  combined  agency  and  unloading  fee  not  exceeding  $500 
on  general  cargo  or  $250  on  bulk  cargo,  if  one  port  of  discharge  is  used,  and  $125  for 
each  additional  port  of  discharge,  the  fee  to  include  the  clearing  of  the  vessel  outward 
if  she  sails  in  Ijallast  or  light,  will  be  allowed. 

The  same  customary  eonunission  and  fees  of  the  port  will  be  allowed  the  branch 
house  of  <iie  agent  as  would  be  allowed  to  others  than  such  branch  house. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  51 

C.    PAYMENTS    NOT   OTHERWISE    ATJTHOKIZED. 

First.  Til  capcswhere  it  is  necesFary  for  1hea,£ron1 1oom])loyabrol<prinT'^nitpd States 
ports  for  bookiiic;  portions  of  carfroos  or  for  negolialiiiK  ohait(  is.  a  lirokcra<:c  cnmuiis- 
sion  of  not  o-n feeding  1  j)er  cent  may  be  j^aid.  In  h^uch  races  in  fdrcign  or  dependency 
ports  the  lowest  customary  (•<  n  mission  or  fee  ]>re^ai]inp;  nndcr  tl)e  iiarlicular  cir- 
cumstances of  tlie  f-pecilic  voyaf-'e  and  trade  may  be  paid.  A\'li(  reNcr  ciisttunary  and 
pro]>er  frei.ulit  l)rokerages  in  I  iiited  Staffs  ports  have  been  jiaid  by  the  a^'(;nt  prior 
to  (he  signing  of  this  agreement,  t-uch  brokerages  may  l»e  included  as  a  j)roper  dis- 
bursement charge  against  the  vessel. 

Second.  In  cases  where  it  is  necessary  for  passenger  tickets  to  besold  through  abri)ker 
in  foreign  or  dependency  ports,  the  lowest  customary  brokerage  ])revailing  under  the 
particular-  circumstances  of  the  sj)ecilic  A'oyage  and  trade  nuiy  be  paid.  Wherever 
customary  and  })roper,  pas^senger  brokerages  in  I'nited  States  ports  have  been  paid 
by  the  agent  prior  to  the  signing  of  this  iigreement,  tsuch  brokerages  may  be  included 
as  a  ])roi)er  disbursement  charge  again.st  the  ves;-el. 

Third.  In  a  foreign  or  dependency  port  for  proper  disbursements  of  the  vessel,  the 
lowest  customary  commission  ]nevailing  under  the  particular  circumstances  of  the 
specitic  voyage  and  trade  may  be  paid,  or  if  the  agent,  being  without  funds  of  the 
corporation  at  such  ])orte,  makes  such  advances,  the  proper  cost  of  securing  such 
funds  will  be  allowed. 

Fourth.  P\)r  entering  and  clearing  vessels  light  or  in  ballast  into  and  from  United 
States  ports  from  and  into  foreign  or  dependency  ]iorts,  respectively,  or  into  and  from 
United  States  Atlantic  i^orts  from  and  into  I'nited  States  Pacilic  j)orls,  resjH'ctively, 
and  vice  versa,  a  fee  commensurate  with  the  ser\  ice,  but  not  e:<:ceeding  $50,  will  be 
allowed.  No  fee  will  be  allowedfor  entering  or  clearing  vessels  light  or  in  ballast  into 
and  from  United  States  ports  from  and  into  United  States  i)orts,  and  vice  ^■ersa,  other 
than  those  above  mentioned. 

Fiith.  Whenever  the  corporation  may  legally  have  the  advantage  of  existing  or 
future  contracts  of  the  agent  for  the  purchase  of  njaterial.  fuel,  !-u])plies.  or  equip- 
ment, it  shall  have  the  lienefit  thereof:  provided  that  such  contract  may  be  made 
available  to  the  corporation  without  unreaKonaldy  interfering  with  the  requirements 
of  other  vessels  owned  or  oj'erated  !)y  the  agent. 

Sixth.  The  corixiration  shall  reimljurse  the  agent  for  all  disbursements  reasonably 
and  properly  incurred  on  its  behalf  in  the  conduct  of  the  business  of  the  vessels  as 
in  this  agreement  authorized. 

Seventh.  All  salvages  shall  be  for  the  benefit  of  the  cori)oration.  This  provision, 
howe^'er,  shall  not  be  construed  to  de])rive  the  agent  of  any  right  to  salvage  reserved 
to  the  agent  as  A'essel  owner  under  any  charter. 

Fightli.  The  cor])oration  shall  ha\'e  the  right  at  any  time  to  terminate  this  agree- 
ment as  to  any  or  all  vessels  assigned  to  the  agent  and  to  assume  forthwith  possession 
of  any  or  all  of  the  \'essels  and  to  collect  directly  all  freights,  moneys,  or  other  charges 
remaining  unpaid.  The  agent,  however,  in  such  cases  shall  adjust,  settle,  and  liqui- 
date the  current  business  of  the  vessels  if  so  required  by  the  corporation. 

Ninth.  Upon  giAdng  the  corjioration  SO  days'  written  notice,  the  agent  shall  haA'e 
the  right  to  terminate  this  agreement,  said  termination  not  to  become  effective  as  to 
any  vessel  until  its  arrival  and  discharge  at  a  United  States  port.  The  agent  shall, 
however,  if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the  current 
business  of  the  vessels  for  account  of  the  corporation. 

Tenth.  The  agent  shall,  at  the  time  of  execution  and  delivery  of  this  contract,  or 
at  any  other  time,  if  so  required  by  the  corporation,  furnish  a  satisfactory  bond  in 
such  amount  as  the  corporation  ma}'  order  for  the  faithful  and  pro])er  discharge  of 
the  obligations  and  duties  hereunder  assumed. 

Fleventh.  This  agreement  shall  be  retroactive  in  its  a])plicalion  to  all  vessels 
heretofore  assigned  to  the  agent  for  the  conduct  of  the  business. 

United  States  Shipping  Board 

Witness  as  to  signature:                                     Emergency  Fleet  ('orporation. 
By ,  Director  nf  Operations. 

Witness  as  to  signature: 

By ,  'The  Agent. 


52  KEPOET   OF   U.    S.    SHIPPIT^G   BOAED. 

United  States  Shipping  Board — Division  of  Operations. 

addenda  to  operating  agreement. 

The  operating  agreement  to  which  this  rider  ie  attached  shall  be,  and  is,  modified 
and  supplemontod  as  follows: 

(1)  The  coninnssions  and  fees  payable  to  the  agent  under  Ihe  attached  agreement 
shall  be  in  accordance  with  Schedule  A  set  forth  on  page  2  of  the  agreement  and 
shall  cover  all  vessels  heretofore  or  hereafter  assigned  to  the  agent  until  a  new  operat- 
ing agreement  covering  future  operations  shall  be  executed  by  the  parties  to  the 
agi'eement. 

(2)  Freight  and  charter  brokerages  paid  in  United  States  ports  shall  be  allowed  as 
heretofore  paid  by  the  operators  up  to  H  P<?r  f^nt  in  all  cases  where  they  haA-e  been 
necessarily  or  ])ro])erly  incurred  to  secure  cargoes  and  charters,  and  have  been  ])aid 
in  accordance  with  the  usages  of  the  trade.  No  brokerage  will  be  allowed  on  car- 
goes allocated  directly  by  the  Shipping  I.oard  or  through  any  of  its  agencies. 

(3)  The  commissions  and  fees  to  be  allowed  under  the  attai  bed  agreement  for 
brokerage  and  agency  services  in  foreign  and  dejiendency  ports  shall  be  in  accord- 
ance with  the  usual  commissions  and  fees  paid  in  the  respecti^•e  ports,  as  certified 
to  the  board  by  the  American  Steamship  Association,  and  verified  by  the  comp- 
troller. 

(4)  The  comptroller  shall  cause  the  accounts  of  the  operators  to  be  audited  in  the 
offices  of  the  latter  and  shall  approve  such  accounts  providing  the  same  are  sup- 
ported by  customary  and  proper  vouchers. 

The  United  States  Shipping  Board,  by  resolution  adopted  February'  20,  1919,  has 
amended  the  operating  agreement  heretofore  issued  l)y  adding  the  abo^-e  clauses. 
The  agreement'as  thus  modified  will  liecome  efi'ective  on  the  agent  attaching  thereto 
this  rider,  executing  the  agreement,  and  returning  the  same  to  the  undersigned. 

J.    H.    ROSSETER, 

Director  of  Operations. 
Washington,  D.  C,  February  25,  1919. 


Exhibit  Q. 

[Form  7057,  0-2.] 
United  Stater  Shipping  Board  Emergency  Fleet  Corporation. 

OPERATING   agreement. 

This  o])crating  agreement  made  this  day  of  ,  by  and  between  the 

United  States  Shipping  Board  Emergency  Fleet  Corporation,  the  first  party,  herein- 
after called  the  corporation,   and  of  ,  the  second  party,  hereinafter 

called  the  operator,  witnesseth: 

Whereas,  the  corporation  is  operating  the  vessel  and  certain  other  vessels 

and  desires  to  make  an  agency  contract  with  the  operator  for  the  operation  of  said 
vessel  and  such  other  vessels  as  it  has  assigned  and  may  assign  to  the  operator  for 
such  purpose; 

Now,  therefore,  it  is  agreed  as  follows: 

First.  The  corporation  hereby  appointa  the  operator  as  its  agent  for  the  o})eration 

of  the  vessel and  such  other  vessels  as  the  corporation  has  assigned,  and  may 

from  time  to  time  assign,  to  the  oj)erator  for  such  purpose. 

Second.  The  corporation  will  man,  equip,  \'ictual,  and  supply  the  vessel,  and 
provide  and  pay  for  all  provisions,  wages,  and  consular,  shipping,  and  discharging 
fees  of  the  master,  officers,  and  crew,  and  all  cabin,  deck,  engine  room,  and  other 
necessary  stores;  and  will  exercise  due  diligence  to  maintain  the  vessel  in  a  thor- 
oughly eflicient  state  in  hull,  machinery,  tackle,  apparel,  furniture,  and  equipment 
for  and  <iiu'iiig  service. 

Thir<l.  'Hie  operator,  as  such  agent: 

(a)  Shall  operate  the  vessel  in  such  trade  or  service  as  the  corporation  shall  direct, 
being  subject  to  the  orders  of  the  corporation  as  to  voyages,  cargoes,  priorities  of 
cargoes,  charters,  rates  of  freight,  and  other  charges,  and  as  to  all  matters  connected 
with  the  use  of  the  vessel. 

(6)  Shall  provide  and  pay  for  all  fuel,  fresh  water,  stevedoring,  port  charges,  pilot- 
ages, agencies,  commissions,  and  consular  charges,  except  those  pertaining  to  the 
master,  ollicers,  and  crew,  and  all  other  expenses  which  are  usually  borne  by  a  tinie 
charterer  of  a  vessel. 


REPORT  OF  U,  S.  SHIPPING  BOARD.  53 

(c)  Shall  exercise  due  diliji^ence  to  see  that  all  freight  is  prepaid,  except  when 
otherwise  instructed  by  tlie  corporation,  or  where  the  j>revailing  custoiiis  in  tlie 
])artirular  trade  are  to  tlic  contrary,  in  whicli  case  freight  may  be  made  payal>le  at 
destination  in  accordance  with  sucli  cu.stom.  All  freight  in"  cases  where  cargo  is 
perishable  or  not  worth  the  freight  diarges  must  be  prepaid  unless  the  custom  of  tlie 
trade  is  to  the  coiitrary. 

((/)  Shall  issue  or  cause  to  be  issued  to  shippers  customary  freight  conlracfs  and 
bills  of  lading,  and  .shall  exercise  due  diligence  to  see  tlial  stuli  bills  of  lading  r-oiitain 
all  exemptions  and  stijndations  usual  to  the  i)articular  trade  or  service  in  which  tlie 
vessel  may  be  engaged,  and  reserve  to  tlie  corjjoration  a  lieu  ujion  all  carg<jes  for  the 
payment  of  freight,  jniniage  cliarges,  (h-ad  freight,  demurrage,  forwarding  charges, 
advance  charges  for  carriage  to  |)ort  of  shi|)ment,  for  contribtilions  in  general  average 
and  special  charges  on  cargo,  and  for  all  fines  or  damages  whiili  the  vi^asel  or  cargoes 
may  incur  by  reasun  of  illegal,  incorrect,  or  insuflieient  marking  or  addressing  of 
j)ackages,  or  description  of  their  contents,  and  in  trades  where  customary,  make  the 
shipments  subject  to  u.sual  war  clau.ses.  to  the  llarter  Act,  to  a  provision  that  all 
general  average  shall  b(>  settled,  unless  otlierwise  directed  by  the  corporation,  at 
New  York  in  accordance  with  York-Antwer]>  rules  of  1890,  and  Antwerp  rule  of  l'.JO:i, 
and  otherwise  in  accordance  with  the  rules  and  customs  of  the  port  of  New  York, 
and  also  subject  to  the  following  clause: 

"If  the  owner  of  the  ship  sliall  liave  exercised  due  diligence  to  make  said  ship  in 
all  respects  seaworthy  and  ])roperly  manneil,  equipped,  and  supplied,  it  is  hereby 
agreed  tliat  in  case  of  loss,  damage,  danger,  or  disaster  resulting  from  fault  or  negli- 
gence of  the  pilot,  master,  or  crew,  in  the  navigation  or  management  of  the  ship,  or 
from  latent  or  other  defects  or  unseaworthiness  of  the  shi]^,  whether  existing  at  the 
time  of  shipment  or  at  tlie  Ijeginning  of  the  vovage  or  on  the  voyage,  but  not  dis- 
coverable by  due  diligence,  the  owner  shall  not  be  liable  therefor,  and  the  consignee 
or  owners  of  the  cargo  shall  not  be  exempt  from  liability  for  contribution  in  general 
a\  erage,  or  for  any  special  cliarges  incurrcMl.  but  with  the  shipowner  shall  contribute 
in  general  average  aiul  sliall  jiay  such  sjiecial  charges  as  if  such  loss,  damage,  danger, 
or  disaster  had  not  resulted  from  such  fault,  negligence,  latent  or  otlier  defect,  or 
unseaworthiness. ' ' 

(f )  Shall  collect  all  freights  and  other  money  due  the  corporation,  advance  all  funds 
for  all  expenses  properly  to  be  paid  by  him  as  agent,  and  take  proper  general  average 
security. 

(/)  Shall  hold  all  money  collected  on  behalf  of  the  corporation,  and  shall  deposit 
the  same  in  national  banks,  or  banks  which  are  members  of  the  United  States  Federal 

Reserve  Association,  as  a  separate  trust  fund,  to  be  designated  " ■ —  Shipping 

Board  Fund,"  and  shall  not  mingle  the  same  with  other  mone\s  owned  or  held  by 
the  operator,  and  shall  make  from  such  funds  all  disbursements  hereinafter  authorized 
to  be  paid  by  or  to  the  operator  for  account  of  the  corporation,  and  shall,  promptly 
after  the  dispatch  of  each  vessel,  or  at  such  other  times  as  may  be  directed,  account 
to  the  corporation  for  moneys  received  and  disbursed.  No  items  unsupported  by 
vouchers  aggregating  more  than  $10  ^vill  be  allowed. 

{g)  Shall  keep  separate  accounts  in  sucli  manner  and  form  as  may  be  prescribed  by 
the  corporation  of  all  moneys  collected  and  disbursed,  and  accord  to  accountants  and 
other  representatives  of  the  corporation  access  to  all  books  and  papers,  and  render  such 
assistance  in  the  examination  thereof  as  the  corporation  may  require. 

(h)  Shall,  in  order  to  prevent  speculation  in  freight  or  passenger  space,  exercise  due 
diligence  to  see  that  all  freight  contracts  show  the  name  of  actual  shipper,  commod- 
ities, quantities,  and  freight  rates,  except  that  in  coastwise  trade  of  the  United  States 
and  in  the  ^\'est  Indies  trade  the  freight  rate  need  not  be  shown  on  i)ermits,  but  must 
be  shown  on  bills  of  lading  and  must  be  the  rate  in  current  tariffs.  No  space  allotted 
to  the  original  shipper  may  be  8u].>let  on  any  terms  or  conditions  whatsoever  without 
the  consent  of  the  corporation.  If  the  operator  shall,  without  the  consent  of  the  cor- 
poration, knowingly  can-y  any  cargo,  the  sjiace  for  which  has  been  sublet  by  the 
original  shipper  upon  any  terms  or  conditions  whatsoever,  the  operator  sliall  receive 
no  commission,  fee,  or  other  compensation  for  any  services  rendered  during  tlie  voyage. 

{i)  Shall  exercise  due  diligence  to  see  that  all  bills  of  lading  when  i.'^sued  agree  with 
the  freight  contracts,  that  all  wharf  receipts  for  freight  are  nonnegotiable,  and  that  a 
freight  contract  or  permit  is  issued  for  eai'h  shipment. 

(j)  Shall  exercise  due  diligence  to  perform  or  cause  to  be  performed  all  of  the  cus- 
tomary agency  duties  concerned  with  loading  and  discharging  cargoes  at  all  ports 
included  in  the  vessel's  itinerary,  and  all  things  necessary  for  the  protection  and 
safeguarding  of  the  interests  of  the  corporation. 

P'ourth.  Tli(>  corporation,  in  consideration  of  the  services  or  things  herein  agreed  to 
be  performed,  shall  pay  compensation  and  allow  commissions  and  fees,  as  follows: 


54  REPOET  OF  U.  S.  SHIPPING  BOARD. 

A.    COMPENSATION   PAYABLE   TO   THE    OPERATOR. 

I.  On  all  vessels  except  tankers. 
(a)  From  United  States  ports: 

(1)  On  s^'eneral  cargo,  a  commission  of  2^  per  cent  on  the  gross  ocean  freight  list. 

(2)  On  bulk  cargo,'  a  commission  of  li  per  cent  on  the  gross  ocean  freight  list. 

The  term  "bulk  cargo,"  as  used  herein,  shall  include  a  cargo,  a  substantial  part 
(amounting  to  50  per  cent  or  more)  of  which  is  loaded  at  one  port  and  discharged  at 
one  port,  when  covered  by  one  bill  of  lading,  and  delivery  is  made  without  regard  to 
marks  or  numbers,  and  all  United  States  Government  cargoes,  when  vessel  is  exclu- 
sively laden  therewith.  Whenever  the  excess  over  such  substantial  part  is  general 
cargo,  the  commission  payable  on  general  cargo  as  above  shall  be  paid  on  the  freight 
earnino-s  on  such  excess.  Wiere  Government  cargoes  are  carried,  and  no  charge  or  a 
nominal  charge  is  made  therefor,  the  commissions  and  fees  shall  be  based  upon  a 
freight  schedule  established  in  each  case  by  the  United  States  Shipping  Board  for 

sucii  purpose.  ,  *  Krv  /• 

(6)  Into  United  States  ports  from  foreign  and  dependency  ports,  a  fee  of  $2oO  for 

each  vessel.  „  .     ,    ,  •      ,     tt 

The  term  "dependency  ports,"  as  used  herein,  shall  include  ports  m  the  Hawaiian 
Islands,  Porto  Rico,   Virgin  Islands,   Guam,   Canal  Zone,    Philippine  Islands,  and 

(c)  From  or  into  United  States  ports,  one  commission  of  5  per  cent  on  all  mails, 
express,  and  commercial  passenger  revenue.  This  commission  also  covers  all  agency 
commissions  and  fees  paid  in  foreign  or  dependency  ports,  except  brokerages  author- 
ized to  be  paid  under  C-II. 

II.  On  tankers. 

Between  United  States  ports  and  foreign  and  dependency  ports,  a  fee  of  $100  for 
each  vessel. 

B.  COMMISSIONS  AND  FEES  PAYABLE  TO  OTHERS  THAN  THE  OPERATOR  TOR  UNLOADING, 
LOADING,   AND  ATTENDANCE  AT  FOREIGN   AND   DEPENDENCY  PORTS. 

I.  On  all  vessels  including  tankers. 

(a)  A  commission  or  fee  for  agency  services  in  accordance  with  the  usual  commis- 
sions and  fees  paid  in  the  respective  ports,  as  certified  to  the  United  States  Shipping 
Board  by  the  American  Steamship  Association,  and  verified  by  the  comptroller; 
provided  that  any  commission  or  fee  paid  for  attending  to  any  mail,  express,  or  com- 
mercial passenger  revenues  shall  be  borne  by  the  operator  oiit  of  the  commission 
allowed  him  under  A-I  (c),  supra,  except  the  brokerages  authorized  to  be  paid  under 
C-II. 

The  same  customary  commission  and  fees  of  the  port  will  be  allowed  the  branch 
house  of  the  operator  as  would  be  allowed  to  others  than  such  branch  house. 

C.    COMMISSIONS   AND   FEES   NOT   OTHERWISE   AUTHORIZED. 

I .  In  cases  where  freight  and  charter  brokerages  are  necessarily  or  properly  incurred 
in  United  States  ports  to  secure  cargoes  and  charters,  and  are  paid  in  accordance  with 
the  usages  of  the  trade,  a  brokerage  commission  not  exceeding  1^  per  cent  will  be 
allowed.  In  such  cases  in  foreign  or  dependency  ports,  freight  and  charter  brokerages 
will  be  allowed  in  accordance  with  the  usual  commissions  and  fees  paid  in  the  respec- 
tive ports,  as  certified  to  the  United  States  Shipping  Board  by  the  American  Steam- 
ship Association,  and  verified  by  the  comptroller. 

II.  In  cases  where  passenger  tickets  are  necessarily  sold  through  a  broker  in  foreign 
or  dependency  ports,  a  brokerage  commission  will  be  allowed  in  accordance  with  the 
usual  commissions  in  the  respective  ports,  as  certified  to  the  United  States  Shipping 
Boai'd  by  the  American  Steamship  Association,  and  verified  by  the  comptroller. 

III.  If  the  operator  is  without  funds  of  the  corporation  to  meet  disbursements  of 
the  vessel  in  foreign  or  dependency  ports,  and  funds  are  there  advanced  by  the  opera- 
tor, or  procured  from  others,  a  commission  will  be  allowed  in  accordance  with  the 
usual  commissions  paid  in  the  respective  ports,  as  certified  to  the  United  States 
Shipping  Board  by  the  American  Steamship  Association,  and  verified  by  the  comp- 
troller. 

IV.  For  entering  and  clearing  a  vessel  light  or  in  ballast  into  and  from  United  States 
ports  from  and  to  foreign  or  dependency  ports,  respectively,  or  into  and  from  United 
States  Atlantic  ports  from  and  into  United  States  Pacific  ports,  respectively,  a  fee 
of  $20  will  be  allowed.  No  fee  will  be  allowed  for  entering  or  clearing  vessels  light 
or  in  ballast  into  and  from  United  States  ports  from  and  into  United  States  ports 
other  than  those  above  mentioned. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  55 

V.  If  the  vessel,  after  cargo  is  booked,  is  diverted  by  the  corporation  to  a  port  other 
than  that  named  or  contemplated  in  the  original  shipping  documents,  no  additional 
compensation  will  be  paid  on  any  increase  in  freight  earnings  resulting  from  such 
diversion,  but  the  operator  will  be  paid  an  additional  fee  of  $250  for  performing  the 
services  incidental  and  necessary  to  the  diversion. 

Fifth.  Whenever  the  corporation  may  legally  have  the  advantage  of  existing  or 
future  contract  of  the  operator  for  the  purchase  of  material,  fuel,  supplies,  or  eijuip- 
ment,  it  shall  have  the  benefit  thereof,  provided  that  such  contracts  may  be  made 
available  to  the  corporation  without  unreasonalily  interfering  with  the  requirements 
of  other  vessels  owned  or  operated  by  the  operator. 

Sixth.  The  corporation  shall  reimbiuse  the  operator  for  all  disbursements  properly 
incurred  on  its  behalf  as  authorized  in  this  agreement. 

Seventh.  All  salvages  shall  be  for  the  benefit  of  the  corporation.  This  provision, 
however,  shall  not  be  construed  to  deprive  the  operator  of  any  right  to  salvage  reserved 
to  the  operator  as  vessel  owner  under  any  charter. 

Eighth.  The  corporation  shall  have  the  right  at  any  time  to  terminate  this  agreement 
as  to  any  or  all  vessels  assigned  to  the  operator,  and  to  assume  forthmth  control  of 
any  or  all  of  the  vessels,  and  to  collect  directly  all  freights,  moneys,  or  other  charges 
remaining  unpaid.  The  operator,  however,  in  such  cases  shall  adjust,  settle,  and 
liquidate  the  current  business  of  the  vessels  if  so  required  by  the  corporation. 

Ninth.  Upon  giving  the  corporation  30  days'  written  notice,  the  operator  shall 
have  the  right  to  terminate  this  agreement,  said  termination  not  to  become  effective 
as  to  any  vessel  until  its  arrival  and  discharge  at  a  United  States  port.  The  operator 
shall,  however,  if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the 
current  business  of  the  vessel. 

Tenth.  The  operator  shall,  at  the  time  of  execution  of  this  agreement,  or  at  any  other 
time,  if  so  required  by  the  corporation,  furnish  a  satisfactory  bond  in  such  amount 
as  the  corporation  may  order  for  the  faithful  and  proper  discharge  of  the  obligations 
and  duties  hereunder  assumed. 

p]leventh.  This  agreement  shall  apply  to  the  operation  of  all  vessels  assigned  to 
the  operator,  sailing  from  United  States  ports  on  or  after  the  Ist  day  of  March,  1919. 

United  States  Shipping  Board 
Emergency  Fleet  Corporation, 

Witness  as  to  signature: 

By ,  Director  of  Operations. 

Witness  as  to  signature: 

By  — — — ,   The  Operator. 


Exhibit  R. 

(Form  7045^D.  of  O.  (8-20— 2M).I 

United  States  Shipping  Board  Emergency  Fleet  Corporation 

managing  agreement. 

This  managing  agreement,  made  this day  of ,  by  and  between  the  United 

States  Shipping  Board  Emergency  Fleet  Corpora^on,  the  first  party,  hereinafter 

called  the  corporation,  and ,  of  -,  the  second  party,  hereinafter 

called  the  manager,  witnesseth: 

Whereas  the  corporation  is  operating  the  vessel and  certain  other  vessels  and 

desires  to  make  an  agency  contract  mth  the  manager  for  the  husbanding  and  managing 
of  said  vessel  and  such  other  vessels  as  it  has  assigned  and  may  assign  to  the  manager 
for  such  purpose ; 

Now,  therefore,  it  is  agreed  as  follows: 

First.  The  corporation  hereby  appoints  the  manager  as  its  agent  for  the  husbanding 
and  managing  of  the  vessel and  such  other  vessels  as  the  corporation  has  as- 
signed, and  may  from  time  to  time  assign,  to  the  manager  for  such  pur|X)se. 

Second.  The" corporation  will  provide  and  pay  for  all  fuel,  fresh  water,  stevedoring, 
port  charges,  pilotages,  agencies,  commissions,  and  consular  charges,  except  those 
pertaining  to  the  master,  officers,  and  crew,  and  all  other  expenses  wliich  are  usually 
borne  by  a  time  charterer  of  a  vessel. 


56  REPORT  OF  U.  S.  SHIPPING  BOARD. 

Third.  The  manager,  as  sxich  agent— 

(a)  Shall  act  as  the  manager  of  the  vessel  in  such  trade  or  service  as  the  corporation 
shall  direct,  being  subject  to  the  orders  of  the  corporation  as  to  voyages,  cargoes, 
priorities  of  cargoes,  charters,  rates  of  freight,  and  other  charges,  and  as  to  all  matters 
connected  with  the  use  of  the  vessel. 

(6)  Shall  take  proper  delivery  of  the  vessel  from  the  operation  or  construction 
division  of  the  corporation,  or  from  the  owner,  builder,  or  anyone  else  having  control, 
as  the  corporation  may  direct. 

(c)  Shall  exercise  due  diligence  to  man,  equip,  victual,  and  supply  the  vessel,  and 
to  provide  and  pay  for  all  provisions,  wages,  and  consular,  shipping,  and  discharging 
fees  of  the  master,  officers,  and  crew;  all  cal)in,  deck,  engine  room,  and  other  necessary 
stores;  and  all  other  costs  and  expenses  (except  those  expenses  to  be  paid  by  the  mana- 
ger out  of  his  own  funds  covered  by  the  comi>ensation  and  fees  hereafter  provided  fort 
properly  incident  to  the  management  of  the  vessel,  including  war  risk  insurance,  if 
any,  required  by  law  on  the  master,  officers,  and  crew. 

(d)  Shall  exercise  due  diligence  to  maintain  the  vessel  in  a  thoroughly  efficient 
state  in  hull,  machinery,  tackle,  apparel,  furniture,  and  equipment,  procuring  for 
and  on  behalf  of  the  corporation  the  necessary  labor  and  material  to  effect  ordinary 
running  repairs  and  replacements.  No  extraordinary  repairs  or  expenses  shall  be 
made  or  incurred,  and  no  alteration  in  hull,  machinery,  or  equipment  shall  be  made, 
by  the  manager,  except  in  serious  emergency,  without  first  securing  in  writing  the 
authoi'ization  of  the  corporation. 

(e)  Shall  exercise  due  diligence  to  see  that  no  damage  to  the  vessel  arises  from 
loading  improper  cargo,  from  improper  stowage,  or  from  improper  berthing  of  the 
vessel. 

if)  Shall,  whenever  no  separate  operator  is  acting,  do  the  things  required  of  an 
operator  under  the  terms  and  conditions  of  the  regular  form  of  operating  agreement  of 
the  corporation  then  in  use. 

(gr)  Shall  hold  all  moneys  collected  on  behalf  of  the  corporation,  and  shall  deposit  the 
same  in  national  banks,  or  banks  wliich  are  members  of  the  United  States  P^ederal 

Reserve  Association,  as  a  separate  trust  fund  to  l)e  designated  " — ,  Shipping 

Board  fund,"  and  shall  not  mingle  the  same  with  other  moneys  owned  or  held  by  the 
manager,  and  shall  make  from  such  funds  all  disbursements  hereinafter  authorized  to 
be  paid  by  or  to  the  manager  for  account  of  the  corporation,  and  shall,  promptly  after 
the  dispatch  of  each  vessel,  or  at  such  other  times  as  may  be  directed,  account  to  the 
corporation  for  moneys  received  and  disbursed.  No  items  not  supported  by  vouchers 
aggregating  more  thaa  $10  will  be  allowed. 

ih)  Shall  keep  separate  accounts  in  such  manner  and  form  as  may  be  prescribed  by 
the  corporation  of  all  moneys  collected  and  disbursed,  and  accord  to  accountants  and 
other  representatives  of  the  corporation  access  to  all  books  and  papers,  and  render 
such  assistance  in  the  examination  tliereof  as  the  corporation  may  require. 

(i)  Shall  exercise  due  diligence  to  do  or  cause  to  be  done  all  things  which  would  be 
done  by  the  owner,  or  the  owner's  agent,  under  the  usual  Government  form  of  time 
charter,  attending  to  all  matters  in  connection  with  the  management  of  the  vessel. 

Fourth.  The  corporation,  in  consideration  of  the  services  or  things  herein  agreed  to 
be  performed,  shall  pay  compensation  and  allow  commissions  as  follows: 

A.    COMPENSATION   FOR   MANAGEMENT. 

I.  For  each  vessel  up  to  and  including  the  fifth,  $400  per  month,  and  at  the  same 
rate  for  each  part  of  a  month. 

II.  For  each  vessel  in  excess  of  five,  $350  per  month,  and  at  the  same  rate  for  each 
part  of  a  month. 

Such  compensation  shall  be  payable  to  the  manager  from  the  day  of  delivery  of  each 
vessel  to  the  manager  until  redelivery  or  loss. 

B.    COMMISSIONS  FOR  ADVANCING  FUNDS. 

I.  If  the  manager  is  without  funds  of  the  corporation,  either  as  the  maixager  or  as 
the  operator,  for  the  disbursement  of  the  vessel  in  foreign  or  dependency  ports,  and 
funds  are  there  advanced  by  the  manager,  or  procured  from  others,  a  commission  'will 
be  allowed  in  accordance  -with  the  usual  commissions  paid  in  the  respective  ports,  as 
certified  to  the  United  States  Shipping  Board  by  the  American  Steamship  Associa- 
tion, and  verified  by  the  comptroller. 

Fiith.  If  the  manager  shall  kno^\'ingly  permit  any  cargo  to  be  carried  without  the 
consent  of  the  corporation  or  the  operator,  th""  manager  shall  receive  no  commission, 
fee,  or  other  compeusation  for  any  services  rendered  during  the  voyage. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  57 

Sixth.  Whenever  the  corporation  may  legally  have  the  advantage  of  any  existing 
or  future  contracts  of  the  manager  for  the  purchase  of  material,  fuel,  supplies,  or 
equipment,  it  shall  have  the  boueMt  thereof,  pro\aded  that  such  contracts  may  be 
made  available  to  the  corporation  without  unreasonably  interferijig  with  the  require- 
ments of  other  vessels  owne<l  or  operated  by  the  manager. 

Seventh.  The  corporation  shall  reimburse  the  manager  for  all  disbursements  prop- 
erly incurred  on  its  behalf  as  authorized  in  this  agreement. 

Eighth.  All  salvages  shall  be  for  the  benefit  of  the  corporation.  This  provision, 
however,  shall  not  be  construed  to  deprive  the  manager  of  any  right  to  salvage  reserved 
to  the  manager  as  vessel  owner  under  any  charter. 

Ninth.  The  corporation  shall  have  the  right,  at  any  time,  to  terminate  this  agree- 
ment as  to  any  or  all  vessels  assigned  to  the  manager,  and  to  assume  fortliwith  control 
of  any  or  all  of  the  vessels,  and  to  collect  directly  all  freights,  moneys,  or  other  charges 
remaining  unpaid.  The  manager,  however,  in  such  case  shall  adjust,  settle,  and 
liquidate  the  current  busiixess  of  the  vessels  if  so  required  by  the  corporation. 

Tenth.  Upon  giving  the  corporation  thirty  days'  written  notice,  the  manager  shall 
have  the  right  to  terminate  this  agreement,  such  termination  not  to  become  effeilive 
as  to  any  vessel  until  its  arrival  and  discharge  at  a  Unite<l  States  port.  The  manager 
shall,  however,  if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the  current 
business  of  the  vessel. 

Eleventh.  The  manager  shall,  at  the  time  of  execution  and  delivery  of  this  agree- 
ment, or  at  any  other  time,  if  so  required  by  the  corporation,  furnish  a  satisfactory 
bond  in  such  amount  as  the  corporation  may  order,  for  the  faitliful  and  proper  dis- 
charge of  the  obligations  and  duties  hereunder  assumed. 

Twelfth.  This  agreement  is  made  with  the  distinct  understanding  that  the  manager 
has  in  his  service  a  competent  shore  force  consisting  of  at  least  one  port  captain  and 
one  port  engineer,  and  in  the  event  that  six  or  more  vessels  are  assigned  to  the  manager, 
one  port  steward,  each  of  whom  has  had  actual  sea  experience  in  his  respective 
capacity. 

Thirteenth.  This  agreement  shall  apply  to  the  management  of  all  vessels  assigned 
to  the  manager,  sailing  from  United  States  ports  on  or  after  the  1st  day  of  March,  1919. 

United  States  Shipping  Board 

Witness  as  to  signature:                                       Emergency  Fleet  Corporation, 
By ,  Director  of  Operations. 

Witness  as  to  signature: 

— . .  By ,  The  Manager. 


Exhibit  S. 

United  States  Shipping  Board  Emergency  Fleet  Corporation, 
managing  agreement. 

This  agreement  made  this day  of by  and  between  the  United  States 

Shipping  Board  Emergency  Fleet  Corporation,  party  of  the  first  part,  hereinafter 

called  the  corporation,  and  — ■  of  ,  party  of  the  second  part,  hereinafter 

called  the  manager,  witnesseth: 

Whereas  the  corporation  is  operating  the  vessel  and  certain  other  vessels 

and  desires  to  make  a  contract  'with  the  manager  for  the  husbanding  and  managing 
of  said  vessel  and  such  other  vessels  as  it  has  assigned  and  may  assign  to  the  manager 
for  such  purpose; 

Now,  therefore,  it  is  agreed  as  follows: 

First.  The  corporation  hereby  appoints  the  manager  as  its  agent  for  the  husbanding 

and  managing  of  the  vessel and  such  other  vessels  as  the  corporation  has  assigned 

and  may  from  time  to  time  assign  to  the  manager  for  such  purpose.  _ 

Second.  The  corporation  vrill  provide  and  pay  for  all  fuel,  fresh  water,  stevedonng, 
port  charges,  pilotages,  agencies,  commissions,  and  consular  charges,  except  those  per- 
taining to  the  master,  officers,  and  crew,  and  all  other  expenses  which  are  usually 
borne  by  a  time  charterer  of  a  vessel. 

Third.  The  manager —  . 

(a)  Shall  act  as  the  manager  and  manage  the  vessel  m  such  trade  or  service  as  the 
corporation  shall  from  time  to  time  direct,  being  at  all  times  subject  to  the  orders  of 
the  corporation  or  its  agents  as  to  voyages,  cargoes,  priorities  of  cargoes,  charters, 
rates  of  freight,  and  other  charges,  and  as  to  any  and  all  matters  arising  out  of  or  con- 
nected with  the  use  of  the  vessels. 


58  REPOBT  OF  U.  S.  SHIPPING  BOAED. 

(b)  Shall,  aa  manager  for  the  corporation,  take  proper  delivery  of  the  vessel  from  the 
operation  or  construction  di\'ision  of  the  corporation,  or  from  the  owner,  builder,  or 
an  one  else  ha^dng  possession,  as  the  corporation  may  direct. 

\c)  Shall  exercise  due  diligence  to  man,  eqviip,  victual,  and  supply  the  vessel,  pro- 
viding and  paj-ing  for  all  provisions,  wages,  bonuses,  consular  shipping  and  discharg- 
ing fees  of  the  master,  officers,  and  crew;  all  cabin,  deck,  engine  room,  and  other 
necessary  stores;  and  all  other  costs  and  expenses  (except  those  expenses  to  be  paid 
by  the  manager  out  of  his  own  funds  covered  by  the  compensation  and  fees  hereinafter 
provided  for)  properly  incident  to  the  management  of  the  vessel,  including  the  war- 
risk  insurance,  if  any,  required  by  law  on  the  master,  officers,  and  crew. 

(d)  Shall  exercise  due  diligence  to  maintain  the  vessel  in  a  thoroughly  efficient 
state  in  hull  and  machinery,  in  tackle,  apparel,  furniture,  and  equipment,  procuring 
for  and  on  behalf  of  the  corporation  the  necessary  labor  and  material  to  effect  ordinary 
running  repairs  and  repljicements.  No  extraordinary  repairs  or  expenses  shall  be 
made  or  incurred  and  no  alteration  in  hull,  machinery,  or  gear  shall  be  made  by  the 
manager,  except  in  serious  emergency,  without  first  securing  in  writing  the  authoriza- 
tion of  the  corporation  or  of  an  agency  charged  by  the  corporation  with  the  giving  of 
sucii  authorization. 

(e)  Shall  exercise  due  diligence  to  see  that  no  harm  or  damage  of  any  kind  comes 
to  the  vessel  through  loading  of  improper  cargo,  through  improper  stowage  or  through 
improper  berthing  of  the  vessel;  that  the  work  of  the  manager  is  done  in  such  a  way 
and  at  such  times  as  not  to  impede  or  retard,  or  to  be  impeded  or  retarded  by,  the  work 
of  the  corporation,  the  operating  agent  appointed  by  it,  or  the  charterer  from  it;  and 
in  general  to  work  in  clo.sest  harmony  with  the  corporation,  the  operating  agent,  or 
charterer  to  the  end  that  the  utmost  efficiency,  dispatch  and  economy  may  be  secured 
in  the  management  and  operation  of  the  vessel. 

(/)  Shall,  whenever  no  separate  operating  agent  is  acting,  do  the  things  such  operat- 
ing agent  would  do  under  the  regular  form  of  operating  agreement  of  the  corporation 
then  in  use,  and  shall  be  bound  by  the  terms  and  conditions  of  such  operating 
agreement. 

(g)  Shall  hold  all  moneys  collected  on  behalf  of  the  corporation,  and  shall  deposit 
the  same  in  national  banks,  or  banks  which  are  members  of  the  United  States  Federal 
Reserve  Association,  as  a  separate  trust  fund,  to  be  designated  " ,  Ship- 
ping Board  fund,"  and  shall  not  mingle  the  same  with  other  moneys  owned  or  held 
by  the  manager;  and  shall  make  from  such  funds  all  disljursements  hereinafter  author- 
ized to  be  paid  by  the  manager  for  account  of  the  corporation  to  others  than  the 
manager. 

(h)  Shall  keep  separate  accounts  in  such  manner  and  form  as  may  be  prescribed  by 
the  corporation  of  all  moneys  collected  and  disbursed,  and  accord  to  accountants  and 
other  representatives  of  the  corporation  access  to  all  books  and  papers,  and  render 
such  assistance  in  the  examination  thereof  as  the  corporation  may  require. 

(i)  Shall  promptly  after  the  dispatch  of  each  vessel,  or  at  such  other  time  or  times 
as  may  be  directed  account  to  the  corporation  for  all  moneys  collected  on  its  behalf, 
and,  with  supporting  vouchers,  account  for  all  disbursements  reasonably  and  properly 
made  on  behalf  of  the  corporation,  as  in  this  agreement  authorized.  No  items  un- 
supported by  vouchers  will  be  allowed  which  in  the  aggregate  exceed  $10. 

(j)  Shall  generally  exercise  due  diligence  to  do  or  cause  to  be  done  all  things  which 
would  be  done  by  the  owner  or  the  owner's  agent  under  the  usual  Government  form 
time  charter,  attending  to  all  matters  arrising  out  of  or  in  connection  with  the  manage- 
ment of  the  vessels,  necessarily  incident  to  the  i^roper  care  and  prompt  shipment  and 
delivery  of  the  cargoes,  and  to  the  protection  and  safeguarding  of  the  interest  of  the 
corporation. 

Fourth.  The  corporation,  in  consideration  of  the  services  or  things  agreed  to  be 
performed  hereunder  by  or  through  tlie  manager,  shall  pay  the  manager  compensa- 
tion and  allow  compensation  to  others  in  accordance  with  the  schedule  which  shall 
from  time  to  time  be  established  by  the  United  States  Shipping  Board.  Until  further 
notice,  compensation  shall  be  allowed  and  paid  as  follows: 

A.    MANAGING    COMPENSATION. 

For  managing  the  vessels  covered  by  this  agreement,  for  rendering  the  customary 
services  of  a  ship's  husband,  and  for  performing  all  of  the  duties  of  the  manager 
prescribed  by  this  agreement: 

I.  For  each  vessel  up  to  and  including  the  fifth  at  the  rate  of  $500  per  month  and 
proportionately  for  each  part  of  a  month. 

II.  For  each  vessel  in  excess  of  five  at  the  rate  of  $350  per  month  and  proportionately 
for  each  part  of  a  month. 

The  managing  compensation  shall  be  payable  as  to  each  vessel  from  the  time  of 
delivery  to  the  manager  until  the  time  of  redelivery  or  loss. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  59 

B.    COMPENSATION    PAYABLE    TO    OTHERS    THAN    THE    MANAGER. 

I.  In  cases  where  it  is  necessary  for  the  manager  to  pay  a  (ominiscion  to  secure 
advances  in  a  foreign  or  dependency  port  for  proj^j-r  dishursements  of  the  vessel,  the 
lowest  customary  commission  prevailing  under  llie  particular  ( irr  umstanrcH  of  the 
specific  voyage  and  trade,  may  he  })aid,  or,  if  tiie  manager,  heing  without  liinds  of 
the  corporation  at  such  ports,  malse  such  advances  the  proper  cost  of  securing  such 
funds  will  be  allowed. 

Fifth.  Unless  the  corporation  otherwise  directs,  matters  connected  with  the  hus- 
banding and  managing  of  the  vessel  in  any  port  in  which  the  manager  has  no  agent 
shoiild  be  attended  to  by  the  master  who  should  be  empowered  to  draw  funds  for 
ordinary  disljurscments  for  rrew's  wages,  provisions,  stores,  and  necessary  repairs, 
as  authorized  in  clau.'^e  "Third  (./)"  of  this  agreement,  provided  that  if  it  is  within  the 
master's  power  he  shall  consult  the  manager  or  the  corporation  by  cable  or  otherwise 
before  making  extensive  repairs  or  re])lacements.  If  the  manager  shall  have  used 
due  diligence  in  the  selection,  instruction,  and  control  of  the  master,  the  mauager  shall 
not  be  responsible  for  the  master's  manner  of  dealing  with  the  funds  so  drawn.  The 
master  shall,  whenever  nece.ssarJ^  ])rocure  funds  from  the  operating  agent,  or  his  repre- 
sentatives, to  avoid  cost  of  commission  or  exchange  whenever  the  operating  agent  or 
his  representatives  has  funds  of  the  corporation  in  hand. 

Sixth.  If  the  manager  sliall  knowingly  carry  any  cargo  without  the  consent  of  the 
corporation,  or  its  representatives,  the  manager  shall  receive  no  commission,  fee,  or 
other  compensation  for  any  services  rendered  as  the  manager  of  the  vessel  during  the 
voyage. 

Seventh.  "Whenever  tlie  corporation  may  legally  have  the  advantage  of  any  exist- 
ing or  future  contract  of  the  manager  for  the  purchase  of  material,  fuel,  supplies,  or 
equipment,  it  shall  have  the  Ijenefit  thereof;  provided  that  such  contract  may  he 
made  available  to  the  corporation  without  unreasonably  interfering  with  the  require- 
ments of  other  vessels  owned  or  operated  by  the  manager. 

Eighth.  The  corporation  shall  reimburse  the  manager  for  all  dislnirsements  reason- 
ably and  properly  incurred  on  its  behalf  in  the  husbanding  and  managing  of  the 
vessels  as  in  this  agreement  authorized. 

Ninth.  All  salvages  shall  be  for  the  benefit  of  the  corporation.  This  provision, 
however,  shall  not  be  construed  to  deprive  the  manager  of  any  right  to  salvage  reserved 
to  the  manager  as  vessel  owner  under  any  charter. 

Tenth.  The  corporation  shall  have  the  right,  at  any  time,  to  terminate  this  agreement 
as  to  any  or  all  vessels  assigned  to  the  manager,  and  to  assume  forthwith  possession  of 
any  or  all  of  the  vessels,  and  to  collect  directly  all  freights,  moneys,  or  other  charges 
remaining  unpaid.  The  manager,  however,  in  such  rase  shall  adjust,  settle,  and 
liquidate  the  current  business  of  the  vessels  if  so  required  by  the  corporation. 

Eleventh.  Upon  giving  the  corporation  30  days'  written  notice,  the  manager  shall 
have  the  right  to  terminate  this  agreement,  said  termination  not  to  become  effective 
as  to  any  vessel  until  its  arrival  and  discharge  at  a  United  States  port.  The  mana- 
ger shall,  however,  if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the 
current  lousiness  of  the  vessels. 

Twelfth.  The  manager  shall,  at  the  time  of  execution  and  delivery  of  this  contract, 
or  at  any  other  time,  if  so  required  by  the  corporation,  furnish  a  satisfactory  bond  in 
such  amount  as  the  corporation  may  order,  for  the  faithful  and  proper  discharge  of  the 
obligations  and   duties  hereunder  assumed. 

Thirteenth.  This  agreement  is  made  with  the  distinct  understanding  that  the  man- 
ager has  in  his  service  a  competent  shore  force  consisting  of  at  least  one  port  captain 
and  one  port  engineer,  and,  in  the  event  that  six  or  more  vessels  are  assigned  to  the 
manager,  one  port  steward,  each  of  whtmi  has  had  actual  sea  experience  in  his  respec- 
tive capacity,  and  each  of  whom  is  exclusively  in  the  ser\T.ce  of  the  manager. 

Fourteenth.  This  agreement  shall  be  retroactive  in  its  application  to  all  vessels 
heretofore  assigned  to  the  manager  for  the  husbanding  of  the  business. 

United  States  Shipping  Board 

Witness  as  to  signature:                                         Emergency  Fleet  Corporation. 
.  By ,  Director  of  Operations. 

Witness  as  to  signature: 

.  By ,  The  Manager. 


60  EEPOET  OF  U.  S.  SHIPPING  BOARD. 

Exhibit  T. 

[Form  M03.) 

United  States  PHipriNG  Board  'Emergency  Fleet  Corporation,  Washington. 

AGENCY  agreement   FOR   MANAGING   AND    OPERATING    STEEL   CARGO   VESSEL. 

This  contract  dated  this day  of ,  192 — ,  between  the  United  States  of 

America,  owner  of  certain  vesFels,  represented  by  the  United  1^'tates  Sliipping  Board 
Emergency  Fleet  Corporation,  hereinafter  called  the  corporation,  and  ,  man- 
aging agent,  hereinafter  called  the  agent,  witneseeth: 

1.  The  corporation  a))])i)ints  the  agent  as  its  agent  for  the  management,  operation, 
and  conduct  of  the  business  of  such  vessels  as  it  has  assigned  and  may  assign  to  the 
agent  for  such  purposes. 

2.  The  agent  agrees  to  act  as  such  agent  and  to  manage,  operate,  and  conduct  the 
business  of  such  vessels  as  have  been  assigned  or  may  be  assigned  for  such  purpose. 
While  the  agent  is  to  be  held  responsible  for  the  management  of  the  vessels,  he  shall  be 
su):)ject  to  the  orders  of  the  corporation  as  to  all  matters  affecting  the  use  of  the  vessels 
when  the  corporation  deems  the  exercise  of  such  power  to  be  in  the  ])ublic  interest. 

3.  The  agent  agrees  to  man,  equip,  victual,  and  supply  the  vessel,  to  provide  and 
pay  for  all  provisions,  wages,  fuel,  fresh  water,  stevedoring,  port  charges,  pilotage, 
agencies'  commissions,  consular  charges,  cabin,  deck,  engine  room,  and  other  stores, 
and  all  other  costs  and  expenses  incident  to  the  management,  operation,  and  conduct 
of  the  business  of  the  vessel  except  as  is  otherwise  provided  herein. 

4.  The  agent  shall  (subject  to  such  regulation  or  methods  or  super\T.sion  and  inspec- 
tion as  may  be  required  or  prescribed  by  the  corporation)  exercise  reasonable  care  to 
maintain  tlae  vessel  in  a  thoroughly  efficient  state  in  hull,  machinery,  tackle,  apparel, 
furniture,  and  equipment,  procuring  for  and  on  behalf  of  the  corporation  the  necessary 
la))or  and  material  to  effect  ordinary  running  repairs  and  replacements.  No  extra- 
ordinary repairs  or  expenses  shall  be  made  or  incurred  and  no  alterations  in  hull, 
machinery,  or  equipment  shall  be  made  ])y  the  agent  except  in  cases  of  serious 
emergency  without  first  securing  in  writing  the  authorization  of  the  corporation. 

5.  The  agent  agrees  to  exercise  reasonable  care  to  avoid  damage  of  every  nature  and 
to  see  that  no  damage  to  the  vessel  arises  from  loading  improper  cargo,  from  improper 
stowage,  or  from  improper  berthing  of  the  vessel,  and  to  see  that  all  freight  is  pre- 
paid, except  when  otherwise  instructed  by  the  corporation,  or  where  the  prevailing 
customs  in  the  particular  trade  as  to  prepayment  of  freight  is  to  the  contrary,  in  which 
case  the  utmost  diligence  on  the  part  of  the  agent  shall  be  exercised  both  as  to  the 
acceptance  of  the  cargo  and  in  the  collection  of  the  freight  money;  failing  to  exercise 
such  diligence,  the  agent  shall  be  liable  therefor. 

6.  The  agent  agrees  to  perform  all  the  customary  duties  of  a  managing  and  operating 
owner  of  the  vessels,  and  to  perform,  or  cause  to  be  performed,  all  the  customary 
agency  duties  concerned  with  loading  and  discharging  cargoes  at  all  ports  included 
in  the  vessel's  itinerary,  and  all  things  necessary  for  the  protection  and  safeguarding 
of  the  interests  of  the  corporation. 

7.  The  agent  agrees  to  issue,  or  cause  to  be  issued,  to  shippers  the  customary  charter 
parties,  freight  contracts,  and  bills  of  lading,  except  as  otherwise  prescribed  by  the 
corporation,  and  shall  exercise  reasonable  care  to  see  that  such  bills  of  lading  when 
not  prescribed  by  the  corporation  shall  contain  all  exemptions  and  stipulations  usual 
in  the  particular  trade  or  seivice  in  which  the  vessel  may  be  engaged,  and  reserve  to 
the  corporation  a  lien,  etc.,  adequate  for  its  protection,  including  reference  to  the 
Harter  Act,  adjustments  of  general  average,  and  Jason  clause. 

8.  The  agent,  on  behalf  of  the  corporation,  agrees  to  collect  at  the  proper  time  all 
freights  and  other  moneys  arising  out  of  management,  operation,  and  business  of  the 
vessel,  and  to  advance  all  disbursements  for  customary  cargo,  managing,  and  operating 
expenses,  and  for  all  other  reasonable  expenses  properly  to  be  paid  by  a  vessel  owner 
and  to  do  all  things  which  the  corporation  is  required  in  law  and  custom  to  do,  either  as 
o  ,vner  of  the  vessels  or  as  carrier  of  cargo. 

9.  The  agent  agrees  to  deposit  all  moneys  collected  on  behalf  of  the  corporation  in 
a  national  bank  or  a  bank  which  is  a  member  of  the  United  States  Federal  Reserve 
Association  as  a  separate  trust  fund  in  the  name  of  the  United  States  Shipping  Board 
Emergency  Fleet  Corporation,  wliich  moneys  shall  be  the  property  of  the  corporation; 
and  whenever  the  treasurer  considers  the  public  interest  demands  they  shall  be  sub- 
ject to  check  by  the  treasurer  of  the  corporation,  as  well  as  by  the  agent,  and  shall 
not  mingle  the  same  with  moneys  owned  or  held  by  the  agent,  but  shall  make  from 
such  fund  all  disbuisements  authorized  to  be  paid  by  the  agent  for  the  account  of 


REPORT  OF  U.  S.  RHTPPIXG  BOARD,  61 

the  cnrporation  and  shiill,  at  such  (imoi<  aiul  in  such  form  a?  may  ho  flirnffnd  by  the 
corporation,  rcncler  a  full  arcount  of  all  monoys  rocci\ed.  No  llomH  aggrpijatingmore 
than  $10  wall  be  allowed  in  settlement  with  the  agent  unless  supported  by  proper 
vouchei-s. 

The  compensation  due  the  agent  shall  be  paid  monthly  on  voucher  from  the 
corporation. 

10.  The  agent  shall  keep  separate  books  of  account  in  such  manner  and  form  as 
may  be  pre.'^i^ribed  by.  or  approved  by,  the  corporation,  devoted  exclusively  to  its 
agency  business  wdth  the  forporation,  which  books,  together  with  all  the  vouchere, 
accouiits,  papers,  or  other  documents,  shall  at  all  times  be  subject  to  the  inspection 
and  audit  of  the  corporation;  and,  if  need  be  for  its  own  protet  (ion,  the  (orporation 
may  at  any  time  take  possession  of  the  same  for  a  time  sufilcienf  to  make  a  complete 
audit  and,  in  case  of  the  termination  of  the  agency,  shall  l)e  entitled  to  possession  of 
such  books  and  papers  as  it  may  deem  to  be  necessary  for  its  safety  and  protection. 

In  the  absence  of  some  other  agreed  value,  said  account,"  shall  set  up  a.s  the  capital 
investment  a  sum  equal  to  the  value  of  the  ve.ssel  at  the  price  of  S200  per  dead-weight 
ton.  For  the  purpose  of  determining  net  revenue  under  this  agreement,  the  following 
charges  shall  be  entered  as  part  of  the  expenses  of  the  vessel:  Depreciation  for  the  first 
>ear,  10  per  cent  of  the  value;  for  the  second  year.  9  per  cent  of  the  remaining  value; 
third,  8  per  cent;  fourth,  7  per  cent;  fifth.  (]  per  cent,  and  5  per  cent  each  year  there- 
after. For  insurance,  at  the  rate  of  41  per  cent  per  annum;  for  interest,  at  the  rate 
of  5  per  cent  per  annum;  for  reserve  for  repairs,  at  the  rate  of  4  per  cent  per  annum. 
General  average,  collision,  and  other  claims  shall  be  charged  to  the  vessel  only  to  such 
extent  as  they  are  not  completely  covered  and  reimbursed  by  insurance. 

The  vaKie  as  set  up  on  the  books  of  the  operators  may  be  understood  to  be  for  book 
Iceeping  purposes  only,  and  such  values  may  vary  with  the  trades  and  may  be  the 
only  variable  item  necessary  by  which  equitable  compensation  may  be  computed 
with  the  object  of  ultimately  placing  all  agents  of  equal  competency  so  far  as  may  be 
reasonably  practicable  on  the  same  basis  of  compensation. 

11.  As  compensation  the  corporation  shall  pay  the  agent  as  follows- 

(a)  An  agent's  fee  of  *200  per  ship  per  month. 

(b)  For  the  period  that  any  ship  is  in  actual  operation  or  in  commission,  and  for 
the  p^n-pose  of  making  monthly  payments  the  agent  will  receive  a  minimum  comp?n- 
sation.  in  addition  to  the  $200  per  month,  of  10  cents  per  dead-weight  ton  per  month 
on  all  ships  under  5,000  tons  (maximum  $4b{)  per  ship  per  month),  and  S  cents  per 
dead-weight  ton  per  month  on  all  ships  of  5.000  tons  and  under  9.000  tons  (minimum 
$150.  maximum  $700.  per  ship  per  month),  and  7  cents  per  dead-weight  ton  per  month 
on  all  .ships  of  9,000  tons  and  over  (minimum  $700  per  ship  pew  month). 

(c)  There  may  be  such  customary  brokerage  charged  again.st  the  o])cration  of  the 
ships  as  may  be  necessary  to  obtain  business,  providing  the  result  of  the  \oyage  wi  1 
justify  same.  In  case  of  doubt  or  dispute  as  to  whether  the  voyage  does  justify  the 
charge,  the  corporation  may  finally  decide  as  to  continuing  the  payment  of  })ro1-eivge 
where  doubt  exists  as  to  justification. 

(d)  The  agent  w^ill  also  receive  a  commission  equal  to  10  per  cent  of  all  net  profits 
on  an  amount  up  to  50  cents  per  dead-weight  ton  per  month.  On  all  net  ])ro!its  in 
excess  of  50  cents  per  dead-weight  ton  per  month,  20  per  cent  up  to  $1  t)er  dead-weight 
ton  per  month  and  25  per  cent  of  all  net  prolits  in  excess  of  $1  per  dead-weight  ton 
per  month. 

12.  The  corporation  shall,  when  it  may  legally  do  so,  have  the  advantage  of  any 
existing  or  future  contracts  of  the  agent  for  the  purchase  of  naterials,  fuel,  supplies, 
or  equii)ment,  pro\ided  that  this  may  be  done  without  unreasonably  interfering  wdth 
the  requirements  of  other  vessels  owned  or  operated  by  the  agent.  In  every  case 
w'here  the  corporation  shall  have  contracted  for  materials,  fuel,  supplies,  or  efiuip- 
ment,  the  agent  shall  procure  the  same  in  pursuance  of  such  contract  and  the  direc- 
tions of  the  corporation. 

lo.  All  salvages  sliall  be  for  the  benefit  of  the  corporation  and  shall  be  considered 
as  part  of  the  eariiings  of  the  vessel. 

14.  The  corporation  shall  have  the  right  at  any  time  to  terminate  this  agreement 
as  to  any  or  all  vessels  assiened  to  the  agent  and  to  assume  forthwith  control  of  any  or 
all  of  the  vessels  and  to  collect  directly  all  freights,  moneys,  or  other  charges  remain- 
ing unpaid.  In  such  ca.ses,  however,  the  age  it  shall  adjust,  settle,  and  liquidate 
the  current  business  of  the  vessels  if  so  required  by  the  corporatio.n. 

15.  Upon  giving  the  corporation  oO  days'  w^ritten  notice  the  agent  shall  have  the 
right  to  terminate  this  agreement,  such  termination  not  to  become  effeilive  as  to 
any  vessel  ujitil  its  arrival  and  discharge  at  a  United  States  jiort.  The  agent  shall, 
however,  if  required  by  the  corporation,  adjust,  settle,  and  liquidate  the  current 
business  of  the  vessel. 


62  EEPOET  or  U.  S.  SHIPPING  BOARD. 

16.  The  agent  shall,  at  the  time  of  execution  and  delivery  of  this  agreement  or  at 
any  other  time,  if  so  required  by  the  corporation,  furnish  a  bond  satisfactory  to  the 
corporation  in  such  amount  as  it  may  order  for  the  faithful  and  proper  discharge  of 
the  obligations  and  duties  hereunder  assumed  by  the  agent. 

in  witness  whereof  the  parties  hereto  execute  this  contract  in  duplicate. 

UNrPED    STATE.S    OF   AMERICA, 

Witness  as  to  signature:  By  United  States  Shipping  Board 

^ —  Emergency  Fi-eet  Corporation, 

Witness  as  to  signature:  By ,  Director  of  Operations. 

By ,  Agent. 


Exhibit  U. 

[Form  M04,  7067.] 

United  States  Shipping  Board. 

[Represented  by  United  States  Shipping  Board  Emergency  Fleet  Corporation,  Washington.) 

AGENCY   AGREEMENT   FOR    MANAGING    AND    OPERATING    VESSELS. 

This  agreement  made  in  duplicate  the  day  of  ,  19 — ,  between  the 

United  States  of  America,  acting  through  the  United  States  Shipping  Board,  repre- 
sented by  the  United  States  Shipping  Board  Emergency  Fleet  (Corporation,  herein- 
after called  the  corporation,  and .  hereinafter  called  the  agent,  witnesseth: 

1.  Appointment  of  agent. — The  corporation  appoints  the  agent  as  its  agent  to  manage, 
operate,  and  conduct  the  business  of  such  vessels  as  it  has  assigned  or  may  assign  to 
the  agent. 

2.  Agent's  acceptance  of  appointment. — The  agent  agrees  to  act  as  such  agent  and  to 
manage,  operate,  and  conduct  the  business  of  such  vessels  in  accordance  Avith  the 
directions,  orders,  and  regulations  which  the  corporation  may  from  time  to  time 
prescribe. 

3.  Manning,  equipping,  etc.,  vessels  and  paying  disbursements. — The  agent  agrees  to 
man,  equip,  victual,  and  supply  such  vessels,  and  to  pa>'  for  account  of  the  corpora- 
tion the  cost  thereof  and  all  other  costs  and  expenses  incident  to  the  management, 
operation,  and  conduct  of  the  business  of  such  vessels,  except  as  is  otlierwise  provided 
herein. 

4.  Maintenance  and  repairs. — The  agent  shall  (subject  to  such  regulation  or  methods 
or  supervision  and  inspection  as  may  be  required  or  prescribed  by  the  corporation) 
exercise  reasonable  care  to  maintain  the  vessel  in  a  thoroughly  efficient  state  in  hull, 
machinery,  tackle,  apparel,  furniture,  and  equipment,  procuring  for  and  on  behalf  of 
the  corporation  the  necessary  labor  and  material  to  elTect  ordinary  running  repairs 
and  replacements.  No  extraordinary  repairs  or  expenses  shall  be  made  or  incurred, 
and  no  alterations  in  hull,  machinery,  or  equipment  shall  be  made  by  the  agent, 
except  in  cases  of  serious  emergency,  without  lirst  securing  in  writing  the  authoriza- 
tion of  the  corporation. 

The  agent  shall  encourage  the  practice  of  performing  all  possible  re]3airs  by  the 
vessel's  crew,  and  when  necessaiy  to  have  repairs  ]^erformed  by  repair  companies 
shall  encourage  the  practice  of  letting  contracts  for  this  work  on  competitive  lump- 
sum bids. 

5.  Agent  must  use  care  to  avoid  all  damage  and  loss. — The  agent  agrees  to  exercise 
reasonable  care  to  protect  and  safeguard  the  interests  of  the  corporation,  the  Shipping 
Board,  and  the  United  States  in  all  respects  and  to  exercise  reasonable  care  to  avoid 
loss  and  damage  of  every  nature  to  the  corporation,  the  Shipping  Board,  or  the  United 
States.  In  judging  the  liability  of  the  agent  under  this  paragraph  the  acts  of  sub- 
agents  or  })rokers  employed  by  the  agent  shall  be  deemed  the  acts  of  the  agent. 

fi.  Trades,  bills  of  lading,  etc. — The  agent  agrees  to  operate  said  vessels  in  such 
serA-ice  as  the  corporation  may  direct  and  to  issue  to  ship]iers  the  customary  charter 
parties,  freight  contracts,  and  bills  of  lading,  except  as  otherwise  prescribed  by  the 
corporation,  and  shall  exercise  reasonable  care  to  see  that  such  shipping  documents 
when  not  prescribed  by  the  corporation  shall  contain  all  exemptions  and  stipulations 
usual  in  the  particular  trade  or  ser\dce  in  which  the  vessel  may  be  engaged. 

7.  Subagents  subject  to  corporation'' s  disapproval. — The  selection  by  the  agent  of 
agents  or  subagents  in  foreign  and  domestic  ports  shall  be  subject  to  disapproval  by 
the  corporation. 


REPORT  OF  U.  S.  SHIPPING  BOARD.  63 

8.  Collection  ofmovei/s. — The  a'^ent  agrees  to  collect  when  <lue  all  fioi<^lit  anfl  other 
moneys  accruing;  to  tiie  corporation  arisino;  out  of  the  manai,'ement,  ojieration,  and 
business  of  the  vessels,  anrj.  in  tlie  event  of  the  failure  of  any  charterer,  sliipper,  or 
other  debtor  of  the  corjxjration  to  pay  pronii>Uy  such  moneys,  to  iiniuediately  notify 
the  pro])er  officers  of  tlic  corporation  and  take  such  steps  as  may  be  ])ro)>er  to  protect 
the  corporation's  interests.  The  a^ent  furtlier  ag:reea  to  do  all  thin<;s  which  the 
corporation  is  retpiired  by  law  or  custom  to  do  either  as  owner  of  the  vessela  or  as 
carrier  of  the  cargo. 

9.  Ilau'lliug  of  moncjix. — The  agent  agrees  to  deposit  all  moneys  collected  on  behalf 
of  the  corporation  in  a  national  bank  or  a  bank  which  is  a  member  of  the  United  State.s 
Federal  Reserve  Association  as  a  separate  fund  in  tlie  name  of  the  United  States 
Shipping  lioard  Emergency  Fleet  (Corporation,  wliich  moneys  shall,  in  so  far  as  the 
agent  is  concerned,  be  the  pro]K'rty  of  the  corporation;  and  whenever  tlie  trea«urer  of 
the  corporation  con.si<lers  the  ])ublic  interest  demands,  they  .shall  be  subject  to  check 
by  him,  as  well  as  by  the  agent;  the  agent  shall  make  from  such  fund  all  disbursements 
authorized  to  be  paid  by  the  agent  for  the  account  of  the  corporation  and  shall,  at  such 
times  and  in  such  form  as  may  be  directed  by  tlie  corporation,  render  a  full  account 
of  all  moneys  received.  No  items  will  be  allowed  in  settlement  with  the  agent  unle.ss 
supported  by  proper  vouchers  or  accountings. 

In  case  the  amount  of  funds  held  by  the  agent  for  the  corporation  should  be  insuffi- 
cient to  meet  the  disbursements  necessary  on  the  vessels  of  the  corporation,  the  agent 
may  secure  an  advance  from  the  corporation,  wliich  shall  be  deposited  in  the  fund 
and  accounted  for  in  such  manner  as  the  corporation  may  direct. 

10.  Accounting  ami  auditing. — The  agent  shall  keep  separate  books  of  account  in 
such  manner  and  form  as  may  be  prescribed  or  approved  by  the  corporation,  devoted 
exclusively  to  the  agency  business  with  the  corporation,  wliich  books,  together  with 
all  vouchers,  accounts,  papers,  or  other  documents,  shall  at  all  times  be  subject  to  the 
inspection  and  audit  of  the  corporation;  and  the  corporation  may  at  any  time  tempo- 
rarily take  possession  of  the  same  to  make  a  complete  audit;  and,  in  case  the  agency  is 
terminated,  may  retain  possession  of  such  books  and  papers  as  it  may  deem  advisable. 
The  agent  shall  furnish  statements  and  reports  when  called  for  by  the  corporation, 
and  in  the  form  prescribed  by  tlie  corporation,  and  shall  generally  conform  its  account- 
ing to  the  directions  of  the  corporation. 

11.  Compensation. — ^The  corporation  shall  pay  to  the  agent  as  full  compensation  for 
the  agent's  Ber\'ices  hereunder  as  follows: 

(a)  From  United Stateft  ports. — Fi\e  per  cent  on  gross  outward  freight,  dead  freight, 
demurrage,  express,  and  mail  revenue:  Provided,  That  2^  per  cent  only  shall  be  paid 
on  full  cargoes  of  coal,  grain,  sulphur,  and  phosphate,  regardless  of  the  number  of  ])orts 
of  loadingor  discharge  and  regardless  of  the  niunber  of  bills  of  lading,  or  consignees: 
Awl  proridrd  further,  That  2^  ])er  cent  only  shall  be  paid  on  full  cargoes  of  other  com- 
modities shipped  from  one  shipper  to  one  consignee,  from  one  port  of  loading  to  one 
port  of  discharge,  to  be  accepted  by  the  ship  and  delivered  without  count  or  marks. 

(b)  Into  United  States  ports. — Two  and  one  half  per  cent  on  gross  inward  freight, 
dead  freight,  demurrage,  express,  and  mail  revenue,  the  minimum  inward  fee  at 
each  port  where  cargo  is  discharged  to  be  $250. 

(c)  Bet.tceen  United  States  ports. — The  provisions  of  (a)  and  (b)  above  shall  govern, 
except  as  to  the  full  cargoes  mentioned  in  la),  as  to  which  the  agent  shall  receive  only 
2i  per  cent  on  the  gross  freight,  dead  freight,  and  demurrage,  and  no  fixed  minimum 
inward  fee. 

(d)  Between  parts  other  than  United  States  ports. — Two  and  one-half  per  cent  on 
gross  freight,  dead  freight,  demurrage,  express,  and  mail  revenue. 

(e)  Ballast  voyages  .—Five  dollars  ])er  day  on  ballast  voyages,  minimum  fee  $50, 
except  in  New  England  coal  trade  between  United  States  ports  north  of  Cape  Hat- 
teras,  minimum  shall  be  $25;  days  to  be  counted  from  clearance  to  entry  of  vessel. 
Wiien  a  vessel  calls  en  route  for"  orders,  fuel,  repairs,  or  any  other  cause,  the  time 
between  entry  and  clearance  at  such  ports  of  call  en  route  not  to  count. 

(  f)  Compensation  while  umler  rapairs,  etc. — For  each  period  the  vessel  is  laid  up 
for  "repairs,  inspection,  or  survey,  the  agent  shall  receive  $25  per  vessel  per  day  for 
each  day  beyond  the  first  10  days  of  that  period.  Where  repairs,  inspections,  or  sur- 
veys are  made  while  the  vessel  is  loading  or  discharging  cargo,  ballast,  or  bunkers,  the 
tirne  so  spent  shall  not  count  as  lay  days. 

Actual  traveling  expenses  incurred  by  the  agent  shall  be  paid  him  and  shall  be 
chargeable  to  the  voyage  account  if  the  vessel  is  laid  up  elsewhere  than  at  the  home 
port  of  the  agent. 

(g)  Passenger  revenue. — Ten  per  cent  on  gross -passenger  and  excess-bagage  revenue: 
Provided,  hovrver.  That  5  per  cent  only  shall  be  paid  on  gro8s-i)assenger  and  excess- 
baggage  revenue  derived  fioni  carrying  passengers  on  cargo  vessels,  as  provided  in 
section  26  of  the  merchant  marine  act  of  1920. 


64  REPORT   OF   V.    S.    SHIPPIl^G  BOARD. 

{h)  Salvage. — Five  per  cent  of  all  salvage  earned  for  account  of  the  vessel  for  salvage 
services  rendered  to  vessels  not  owned  or  controlled  by  the  United  States  Shipping 
Board  or  the  corporation,  and  2A-  per  cent  on  all  salvage  earned  for  account  of  the 
vessel  for  salvage  services  rendered  to  vessels  of  the  United  States  Shipping  Board  or 
the  corporation.  The  amount  of  salvage  awards  for  such  last-named  services  shall 
be  determined  by  the  corporation,  and  all  negotiations  for  settlements  of  other  salvage 
claims  shall  be  in  the  control  of  the  corporation. 

(?■)  Branch  houses  of  the  agent. — Compensation  for  agency  services  of  agent's  branch 
houses  is  provided  for  below  in  paragraph  12,  subdivision  (6). 

{j)  United  States  ports,  as  used  above,  means  United  States  continental  ports,  not 
including  Alaska  or  the  Panama  Canal  Zone. 

{k)  The  commissions  provided  for  above  upon  the  gross  freight,  dead  freight,  de- 
murrage, express,  mail,  passenger,  and  excess-baggage  revenue,  and  salvage  shall  be 
paid  only  on  revenue  actually  collected,  except  where  the  agent  at  the  corporation's 
request  carries  governmental  cargo  on  which  no  freight  is  to  be  collected;  final  control 
over  the  compromise,  settlement,  or  waiver  oi  disputed  claims  for  gross  freight,  dead 
freight,  demurrage,  etc.,  to  be  with  the  corporation. 

12.  Brokerage  commissions,  etc. — There  shall  be  charged  against  the  voyage  account: 
(o)  Freight,  passenger,  and  charter  brokerage  in  cases  where  it  is  necessarily  and 

properly  incurred  to  secure  cargoes,  passengers,  or  charters  in  accordance  with  the 
usages  of  the  trade. 

(b)  The  customary  fees  and  commissions  for  all  ports  in  the  vessel's  itinerary  where 
these  charges  are  necessarily  and  properly  incurred.  For  agency  services  rendered 
by  branch  houses  of  the  agent,  in  foreign  and  dependency  ports,  the  agent  shall  be 
paid  and  there  shall  be  charged  against  the  voyage  account  the  customary  fees  and 
commissions  for  those  ports,  as  speciiied  in  the  schedule  of  fees  and  commissions  for 
foreign  and  dependency  ports  adopted  by  the  corporation  March  1,  1920,  as  the  same 
may  be  revised  from  time  to  time.  Revisions  shall  not  be  made  without  15  days' 
notice  to  the  agent.  For  agency  services  rendered  by  branch  houses  of  the  agent 
in  United  States  ports  the  agent  shall  be  paid  and  there  shall  be  charged  against  the 
voyage  accoimt  the  customary  fees  for  such  services  in  those  ports  until  such  time  as 
the  corporation  shall  adopt  a  schedule  for  such  fees,  and  when  said  schedule  is  adopted 
it  shall  govern,  as  adopted  and  revised  from  time  to  time. 

But  unless  said  schedule  expressly  so  provides,  fees  shall  not  be  paid  for  agency 
services  in  United  States  ports  where  the  vessel  enters  to  load  or  discharge  cargo, 
ballast,  or  passengers,  or  undergo  repairs,  inspection,  or  survey,  in  addition  to  the 
compensation  in  those  cases  already  provided  for  in  subdivisions  (a),  (b),  (c),  (e),  (/), 
and  (g),  under  section  11  above,  headed  "Compensation." 

13.  Use  of  each  others'  contracts  by  the  corporation  and  agent .- — The  corporation  shall, 
when  it  may  legally  do  so,  have  the  advantage  of  any  existing,  or  future,  contracts 
of  the  agent  for  the  purchase  of  materials,  fuel,  supplies,  or  equipment;  provided,  this 
may  be  done  mthout  unreasonably  interfering  with  the  requirements  of  other  vessels 
owned  or  operated  by  the  agent.  In  every  case  where  the  corporation  shall  contract 
or  shall  have  contracted  for  materials,  fuel,  supplies,  equipment,  or  services,  such  as 
those  of  the  American  Bureau  of  Survey,  the  Insurance  Syndicates,  or  other  similar 
services,  the  agent  shall  procure  the  same  in  pursuance  of  such  contract  and  shall 
pay  for  the  same  in  accordance  with  the  directions  of  the  corporation;  provided,  that 
when  necessary  to  avoid  undue  delay  to  vessels,  the  agent  may,  subject  to  the  cor- 
poration's approval  first  obtained,  procure  materials,  fuel,  supplies,  equipment,  or 
services  from  other  sources  at  lowest  obtainable  costs.  The  agent,  in  such  cases,  shall 
support  its  disbursements  with  satisfactory  explanation  to  the  corporation. 

14.  General  average — Particular  average. — In  case  of  general  or  particular  average, 
the  agent  agrees  to  appoint  an  adjuster,  approved  by  the  corporation,  and  to  assist 
the  adjuster  in  preparing  the  average  account,  to  take  proper  security  for  the  cargo 
proportion  of  average,  and  to  take  liens  and  all  other  possible  measures  to  protect  the 
interests  of  the  corporation.  For  such  services  the  agent  shall  receive  the  customary 
fee,  the  amount  of  which  will  be  determined,  jointly,  by  the  agent  and  the  adjuster, 
subject  .to  the  approval  of  the  corporation. 

15.  Bond. — The  agent  agrees,  whenever  required  by  the  corporation,  to  furnish  a 
bond  satisfactory  to  the  corporation  for  the  faithful  performance  of  the  agent's  duties 
and  obligations  hereunder. 

16.  Termination  of  agency. — (a)  The  corporation  shall  have  the  right  at  any  time  to 
terminate  this  agreement  as  to  any  and  all  vessels  assigned  to  the  agent  and  to  assume 
control  forthwith  of  any  or  all  of  said  vessels  and  to  collect  directly  all  freight  moneys 
or  other  debts  remaining  unpaid. 

_  (b)  Upon  giving  the  corporation  30  days'  written  notice,  the  agent  shall  have  the 
right  to  terminate  this  agreement,  such  termination  not  to  become  effective  as  to  any 
vessel  until  its  arrival  and  discharge  at  a  United  States  port. 


KEPORT  OF  U.  S.  SHIPPING  BOARD. 


65 


In  cases  of  termination  under  cither  (a)  or  (6),  the  agent  shall,  if  required  by  the 
corporation,  adjust,  settle,  and  li(|uidate  the  current  business  of  the  vessels. 

17.  Retroactive  to  March  /.  — This  agreement  is  in  substitution  of,  and  hereby  abro- 
gates, the  agreement  made  elfectiveMarch  1,  1920,  and  known  as  Form  MO.  '^,  and 
all  rights  and  obligations  of  the  parties  under  said  Form  MO.  3  are  hereby  canceled 
and  this  jiresent  agreement  is  made  retroactive  to  March  1,  1920,  except  as  may  be 
otherwise  mutually  agreed  by  the  corporation  and  the  agent,  and  noted  hereon  in 
writing,  over  the  signatures  of  the  persons  authorized  to  represent  the  corporation  and 
the  agent. 

(Space  for  notations.) 

18.  Interpretation  of  this  agreement. — Any  question  arising  under  this  agreement 
may,  at  the  option  of  either  party  hereto,  be  referred  for  recommendation  to  a  com- 
mittee known  as  the  standing  committee  on  managing  agents'  agreement,  consisting 
of.  first,  duly  appointed  representatives  of  the  corporation;  second,  duly  appointed 
representatives  of  the  American  Steamship  Owners'  Association,  the  United  States 
Ship  Operators'  Association,  Northwest  Steamship  Managers'  Association,  the  Pacific- 
American  Steamship  Association,  the  Gulf  Shipping  Conference  (Inc.),  the  South 
Atlantic  Conference.  The  determinations  of  this  committee  shall  be  only  in  the  form 
of  recommendations  to  the  corporation,  the  final  decision  to  be  left  to  the  corporation. 

In  witness  whereof,  the  parties  hereto  have  executed  this  contract,  in  duplicate, 
the  day  and  year  first  above  written. 

United  States  op  Americ.\, 
By  United  States  Shipping  Board. 
By  United  States  Shipping   Board 
Emergency  Fleet   Corporation. 

By — — ,  President. 

Attest: 


Secretary. 


By 


-,  Agent, 


Exhibit  V. 

united  states  shipping  board. 

List  of  manngers  and/or  operators,  operating  United  States  Shipping  Board  vessels  either 
by  themselves  entirehj  or  in  conjunction  with  the  United  States  Shipping  Board  as  at 
Feb.  28,  lOfil. 


Name  and  address. 

Managing 
agent. 

Manager 

and 
operator. 

Manager. 

Time 
charter. 

Bare  boat 
hire. 

X 
X 

American  Shipping  Corporation,  .Jackson\alle,  Fla. . . 

American  Fuel  Oil  &,  Transportation  Co.,  New  York 

City            

X 

X 

X 
X 
X 

X 
X 

Atlantic  Transport  Co.,  New  York  City 

American  Metal  Transport  Co.,  New  York  City 

Atlantic  Gulf  &  Pacific  Steamship  Co.  of  Baltimore, 

Atlantic  <fe  Pacific  Steamship  Co.,  New  York  City 

Bloch  Diamond  Steamship  Co.,  New  York  City     

Bull  A  H    ct  Co    New  York  City 

X 
X 
X 

Baltimore  (5ceanic'steamship  Co.,  Baltimore 

1 

Berwind  White  Coal  Co    New  York  City. . 

X 
X 
X 

Blake  W   A    &  Co  ,  Baltimore                  

X 
X 

X 
X 

Cosmopolitan  Shipping  Co.,  New  York  City  and  New 

1 

X 

X 

Columbia  Pacific  Shipping  Co.,  Portland,  Oreg 

Coyle  W  G    &  Co    New  Orleans               

X 

».' 

X 

X 
X 
X 
X 

i 

1 

Clinchfield  Navigation  Co.,  New  York  City 

X 

1 

52880°— S.  Doc.  38,  67-1- 


66 


REPORT  or  U.  S.  SHIPPING  BOARD. 


List  of  managers  and/or  operators,  operating  United  States  Skipping  Board  vessels  etiher 
hy  themselves  entirely  or  in  conjunction  uith  the  United  States  Shipping  Board  a$  at 
Feb.  28,  i5»f/— Continued. 


Name  and  address. 

Managing 
agent. 

Manager 

and 
operator. 

Manager. 

Time 
charter. 

Bare  boat 
hire. 

Dollar,  Robt.,  &  Co.,  San  Francisco,  Calif 

X 

X 

Elwell,  .l.'W.,  &  Co.,  New  York  City 

X 

Eastern  Transportation  Co.,  Baltimore 

X 
X 
X 

! 

Export  Steamship  Co.,  New  York  City 

X 
X 
X 
X 
X 
X 

X 

Emerv,  .1.  .'^.,  &  Co.,  Boston,  Mass 

1 

Evans  E.  C,  &  Sons,  ."^an  Francisco 

1 

,•-•-•- 

Earn  Line  Steamship  Co.,  Philadelphia 

Elder  Steel  Steamship  Co.,  New  York  City 

France  &  Canada  Steamship  Corporation,  New  York 
City 

France  &  Canada  Oil  Transportation  Co.,  New  York 
City 

X 

•Green  Star  Steamship  Corporation^  New  York  City. . 

X 
X 
X 

X 

General  Steamsliip  Co.,  San  Francisco 

................. 

Gulf  Refining  Co.,  New  York  City 

X 

Gilniartin  &  Co.,  New  York  Citv 

X 
X 

Grace,  W.  R.,  &  Co.,  New  York"  City  and  San  Fran- 

X 
X 

Gulf  Towing  &  Wrecking  Co 

Gulf  Export  Transportation  Co.,  Beaumont,  Tex 

X 

Guilds,  A .  A 

X 

^ 

Harriss-Magill  &  Co.,  New  York  City 

X 

x 

X 
X 

Hasler  &  Co.  (Inc.) 

International  Freight  Corporation,  New  York  City 

X 

International  Maritime  Corporation  (W.  J.  Coogan, 
receiver),  New  York  City 

Jahncke,  D.  D.,  &  Ship  Repair  Co.  (Inc.) 

X 

Kerr  Steamship  Corporation,  New  York  City 

Lykes  Bros.,  Galveston,  Tex 

X 
X 
X 

X 

X 

Lind  Navigation  Co.,  New  York  City 

Los  Angeles  Pacific  Navigation  Co.,  Los  Angeles, 
Calif 

Lawrance  &  Co.,  Boston 

X 

Luckenbach  Steamship  Co.,  New  York  City 

X 

X 
X 
X 
X 

X 

Munson  Steamship  Lines,  New  i  ork  City 

X 
X 
X 

Moore  &  McCormack,  New  York  Citv '. 

Merrill  &  Chapman  Derrick  Wrecking  Co 

X 

Mississippi  Shipping  Co.,  New  Orleans,  La 

X 

X 
X 
X 

Mobile  Towing  &.  Wrecking  Co.,  Mobile 

X 
X 
X 
X 

X 
X 

X 
X 
X 
X 

X 

X 
X 
X 

X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 

McCormack  &  McPherson,  San  Francisco 

Mallory  Steamship  Co.,  New  York  City 

Megee,  Chas.  T.,  Philadelphia,  Pa 

Merchants  &  Miners  Transportation  Co.,  Baltimore, 
Md 

• 

N.  Y.  &  Cuba  Mail  Steamship  Co.,  New  York  City. . 

X 

N.  Y.  &  Argentine  Steamship  Co.,  New  York  Citv 

N.  Atlantic  A;  Western  Steamship  Co.,  New  York  City 
Northern  Steamship  Co.  (Inc.),  New  York  City 

National  Shipping  Corporation,  New  York  City 

New  Orleans  &  South  American  Steamship  Co.,  New 
Orleans,  La 

New  York  &  Porto  Rico  Steamship  Co.,  New  York 

Norton,  Lillv  &  Co.,  New  York  City 

Oriental  Navigation  Co.,  New  York  City 

Pacific  Mail  Steamship  Corporation,  San  Francisco 
and  New  York 

X 
X 

Pacific  Steamship  Co.,  Seattle,  Wash 

Paragon  Shipping  Corporation,  New  York  City 

Patterson,  Graham  &  Co.,  New  York  City 

Pendleton  Bros.,  New  York  City 

X 

X 

Red  Star  Line,  New  York  Citv. .        .  

Ripley,  Daniel  &  Co.,  Galveston,  Tex 

Rogers  &  Webb,  Boston,  Mass... 

Richards,  C.  B.,  &  Co.,  New  York  Citv 

X 

Richmond  &  New  York  Steamship  Co 

Steele,  J.  H.  W.,  &  Co.,  Galveston^  Tex 

X 
X 

Struthers  &  Dixon,  San  Francisco 

Sgitcovich,  S.,  &Co.,  Galveston,  Tex 

Sigsbee,  Humphrey  &  Co.,  New  York  City 

REPORT  OF  U.  S.  SHIPPING  BOARD. 


67 


List  of  managers  and/or  operators  operating  United  States  Shipping  Board  vessels  either 
by  themselves  entirely  or  in  conjunction  with  the  United  States  Shipping  Board  as  at 
Feb.  28,  1921— Continued. 


Name  and  address. 

Managing 
agent. 

Manager 

and 
operator. 

Manager. 

Time 
charter. 

Bare  boat 
hire. 

Smith  &  Terry  (Inc.),  New  York  City 

X 

Susquehanna  Steamship  Co.,  New  York  City 

X 
X 

X 
X 
X 
X 

Seager  Steamship  Co.j  New  York  Citv 

South  Atlantic  Maritime  Corporation,  Washington, 

X 

Sprague,  C.  H.,  &  Son,  Uoston,  Ma.ss 

States  Marine  Co.,  of  Baltimore,  Baltimore,  Md 

Strachan  Shipping  Co.,  Savannah,  Ga 

Sullivan  Lichterage  Co.,  New  York  Citv 

X 

Sudden  &  Christcnson,  San  Francisco,  Calif 

X 
X 
X 
X 
X 
X 
X 
X 
X 
X 

X 

Seaboard  &  Gulf  Steamship  Co.,  New  York  Citv 

Standard  Steamship  Co.,  New  York  and  Baltimore.. 

States  Marine  &  Commercial  Co.,  New  York  City 

Swayne  &  Hovt,  San  Francisco 

Tampa — Inter-Ocean  Steamship  Co.,  Tampa,  Fla. . . 

Texas  Trans.  &  Terminal  Co.,  New  York  City 

Thorndykc  &  Trcnholmc,  Seattle,  Wash 

Trosdale,  Plant  &  La  Fonta,  New  Orleans 

X 

Terminal  Shipping  Co.,  Baltimore,  Md 

Texas  Oil  Co.,  New  York  City 

X 

Tracy  Steamship  Co.,  New  York  Citv 

X 
X 
X 

X 
X 
X 

Tropical  Steamship  Co.,  New  York  City 

United  American  Lines 

United  States  &  Australasia  Lines,  (Inc).,  New  York 
Citv 

United  States  &  Brazil  Steamship  Co.,  New  York  Citv. 

United  States  Mail  Steanxship  Co 

X 

X 

United  Steamship  Co.,  Galveston,  Tex 

X 
X 
X 
X 
X 
X 
X 
X 
X 
X 

Van  Hevnigan  Bkg.  Co.,  Mobile,  Ala 

Wiiliams,  Dimond'&  Co.,  San  Francisco,  Calif 

Winchester,  J.  H.,  &  Co.,  New  York  City 

Waterhouse,  Frank  &  Co.,  Seattle,  Wash 

Waterman  Steamship  Co.,  Mobile,  Ala 

Wells,  Geo.  H.,  &  Co.,  New  York  City 

Wessel,  Duval  &  Co.,  New  York  City 

West  India  Steamship  Co.,  New  York  City  . 

Williamson  &  Raners,  Savannah,  Ga. . 

X 

X 

Wiest,  W.  R.,  &  Co.,  Baltimore,  Md 

X 

SCHEDULE    1. 

Classified  statement  of  vessels  sold  showing  quantity,  dead-tveight  tonnages,  and  amounts 
received  therefor  from  inception  to  Feb.  28,  1921. 


Total. 

Cargo. 

Refrigerator. 

No. 

Dead- 
weight 
tonnage. 

Amount. 

No. 

Dead- 
weight 
tonnage. 

Amount. 

No. 

Dead- 
weight 
tonnage. 

"Amount. 

Steel: 

76 

8 

147 

53 
41 

386, 010 
42, 987 

1,079,673 

116, 416 
231, 139 

898,6,53,415.63 
,5,977,312.50 

173,943,641.34 

6,117,059.53 
25,  880,  365. 17 

45 

8 

99 

21 
30 

298, 010 

.'R.'-,9.  549.  4.50.  00 

42,987      .1.977.312.  .50 

Requisitioned 
on  ways 

Requisitioned 
afloat 

621, 021 

71,861 
175,  742 

102,583,087.72 

1, 930,  756.  25 
21,  866,  615. 17 

4 

34, 353 

$7,  889,  800. 00 

Totalsteel. 

325 

1, 856,  225 

311,  ,571, 794. 17 

203 

1,209,621  191,907,221.64 

4 

34,353 

7,  8S9.  800. 00 

Wood: 

Contract 

Requisitioned 

afloat 

Seized 

103 
14 

179,  830 

5,500 
1,216 

1 
9  347  689  55       ''^ 

105, 330 

3  501  289.  55 

322,711.96 
32, 500. 00 

4 



Total  wood. 

9,  702,  901.  51 

24i     105, 330 

3  501  289.  ,55 

Composite: 

Contract 

11 

42, 150 

1,555,000.00 

11 

42,150 

1.  55.5, 000. 00 

Grand  to- 
tal  

457 

2,0S4,921 

322,829,695.68 

2381,357,101 

196, 963, 511. 19 

4 

34,353 

7, 889, 800. 00 

68 


EEPORT  OF  U.  S.  SHIPPING  BOARD. 


Classified  statement  of  vessels  sold  shouing  quantity ,  dead-weight  tonnages,  and  amount 
received  therefor  from  inception  to  Feb.  28,  1921 — Continued. 


Tankers. 

Freight  and  passenger. 

Corners. 

No. 

Dead- 
weight 
tonnage. 

Amount. 

No. 

Dead- 
weight 
tor_nage. 

Amount. 

No. 

Dead- 
weight 
tonnage 

Amount. 

Steel: 
Requisitioned 

on  ways 

Requisitioned 

afloat 

37 
3 

385, 667 
9,762 

$54, 301, 230.  42 
602, 455. 00 

7 

2 
11 

38, 632 

5,399 
55,  397 

$9, 169,  523.  20 

125,  025.  00 
5,  013,  750. 00 

9 

29, 394 

$1, 393, 000.  00 

otjiz-cu ......... 

■  ' 

Totalsteel. 

10 

395,  429 

54, 903, 685.  42 

20 

99,428 

14, 308,  298.  20 

9 

29,  394 

1, 393, 000. 00 

Grand  to- 
tal  

40 

395, 429 

54,  903, 685. 42 

20 

99, 428 

14, 308,  298.  20 

9 

29,  39J 

1, 393, 000.  00 

Barges. 

Tugs. 

Army  transports. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Amount. 

Num- 
ber. 

Amount. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Amount. 

Steel: 

20 
18 

$3, 284,  500.  00 
2,065,823.28 

11 

88,000 

S35,  819, 465. 63 

Requisitioned 

d>  it/al  ......... 

Total  steel . 

38 

5, 350,  323.  28 

11 

88,000 

35,  819, 465. 63 

Wood: 

29 

9 
3 

74,  500i     SI.  878. 900.  00 

50 

5 
1 

3, 967,  500. 00 

242,711.96 
21,000.00 

Requisitioned 

5,500 
1,216 

80, 000. 00 
11,500.00 

41 

81,216 

1, 970, 400.  00 

56 

4.231.211.96 

Grand  total 

-• 

41 

81,216 

1, 970, 400.  00 

94|    9,581,535.24 

11 

88, 000     35, 819,  465. 63 

SCHEDULE   2. 

Statement  of  vessels  and/or  hulls  declared  surplus  and  sold  from  inception  to  Feb.  28, 1921. 


Total. 

Cargo. 

Barges. 

Type  of  construction  and  method  of 
acquisition. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Tugs. 

4 

78 

4 

272,800 

42 

186,600 

25 

86,200 

11 

Total  sold 

82 

272,800 

42 

186,600 

25 

86,200 

15 

REPORT  OF  U.  S.  SHIPPING  BOARD. 


69 


SCHEDULE   3. 

Statement  of  vessels  sold  shov:ing  quantity  and  dead- weirfht  tonnages  by  classification  from 

imrplionlo  Feb.  28,  1921. 


Total. 

Cargo. 

Refrigerator. 

Tankers. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead-     vr,,„. 
weight    7™- 
tonnage. '  "^ 

Dead- 
weight 
tonnage. 

Steel: 

Con  tract 

76 
8 
147 
.53 
41 

386,010 

42,987 

1,079,673 

116,416 

231,139 

45 
8 
99 
21 
30 

298, 010 
42,987 

621,021 
71,861 

175. 742 

Purchased 

Requisitioned  on  wavs 

4 

34,3.53 

37 
3 

385,667 
9,762 

Requisitioned  afloat." 

Seized 

Total  steel 

325 

1    S.Vv22.'i 

203 

1,209,621 

4 

:34,.3.53  !      40 

395, 429 

Wood: 

Contract 

103 
14 

4 

179,  s:?0 
5, 500 
1,216 

24 

105, 330 

Requisitioned  afloat 

Seized 

Total  wood 

•121 

186,  .546 

24 

105,330 



<3omposite:  Contract 

n  ]        42, 150  1       11 

42, 1.50 

1                               1 

' i 

Grand  total 

457      2.0,'a  921 

238 

1,357,101 

4 

34,353  1       40 

395,429 

Freight  and 
passengers. 

Colliers. 

Barges. 

Army  and 
transports. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Tugs. 

Steel: 

Contract 

11 

88, 000 

20 

Requisitioned  on  ways. 
Requisitioned  afloat . . . 

7 
2 
11 

38, 632 

5, 399 
55, 397 

9 

29,394 

18 

......  ........ 

Total  steel 

20 

99,428           9  ;      29,394 

U 

88,000 

38 

Wood: 

Contract                    .  . 

29 
9 
3 

74,500 
5,500 
1,216 

50 

5 

Seized 

1 

1 

1 

41 

81,216 

56 

Grand  total 

20         99.428           9         29.394 

41 

81,216 

11 

88,000 

94 

SCnEDUI>E  4. 


Statement  of  vessels  the  construction  ofvhich  ivas  suspended  and/or  canceled  from  inception 

to  Feb.  28,  1921. 


Type  of  construction  and 
method  of  acquisition. 

Total. 

Cargo. 

Tanker. 

Passenger  and 
cargo. 

Transport. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Steel: 

Contract 

415 
25 

2,941,175 
168, 600 

241 
16 

1,881,375 
96,100 

29 

263,600 

5 
2 

65,000 
9,000 

78 

724,000 

7     63,500 

Total  steel 

440 

413 

30 

31 

3, 109, 775 

1, 162, 500 

105, 000 

228,500 

257 
217 
30 
31 

1,977,475 
824, 850 
105, 000 
228, 500 

36   327,100 

7 

74,000 

78 

724,000 



Composite,  contract 

1 

....1 

Grand  total 

914 

4,605,775 

535 

3, 135, 825 

36  1327,100 

7 

74,000 

78  1  724,000 

70 


REPORT  OF  TJ.  S.  SHIPPING  BOARD. 


Statement  of  vessels  the  construction  of  which  u'as  suspended  and/or  canceled  from  in-^ 
ception  to  Feb.  28,  J9fi— Continued. 


Type  of  construction  and 
method  of  acquisition. 

Barges. 

Converted 
barges. 

Finished 
hulls. 

Sailing 
vessels. 

Tugs. 

No. 

Dead- 
weight 
tons. 

No. 

Dead- 
weight 
tons. 

No. 

Dead- 
weight 
tons. 

No. 

Dead- 
weight 
tons. 

No. 

Dead- 
weight 
tons. 

4 
111 

7,200 
292,500 

58 
74 

6 

25, 300 

3 

12,450 

2 

7,400 

Grand  total 

115 

299,700 

6 

25,300 

3 

12,450 

2 

7,400 

132 

SCHEDULE  5. 


Statement  of  vessels  and/or  hulls  declared,  surplus,  and  not  sold  from  inception  to 

Feb.  28,  1921. 


Total. 

Cargo. 

Barges. 

Type  of  construction  and 
method  of  acquisition. 

Number. 

Dead- 
weight 
tons. 

Number. 

Dead- 
weight 
tons. 

Number. 

Dead- 
weight 
tons. 

Tugs. 

Steel'  Contract 

3 

131 

15,000 
410,500 

3 

83 

15,000 
297, 850 

30 

112,650 

18 

134 

425,500 

86 

312,850 

30 

112,650 

18 

SCHEDULE   6. 

Statement  of  vessels  released  from  inception  to  Feb.  28,  1921. 


TjTse  of  construction  and 
method  of  acquisition. 

Total. 

Cargo. 

Freight 
and  pas- 
senger. 

Tanker. 

Sailer. 

Barge. 

Tug. 

Steel: 

Requisitioned  afloat  > 

Requisitioned  Dutch  i 

Requisitioned  on  ways  2  — 

71 
80 
20 

47 
76 
15 

17 
1 

1 
3 
5 

2 

4 

Total  steel 

171  1            1.38 

18 

9 

2 

4 

Wood:  Requisitioned  afloat "... 
Composite:  Requisitioned  afloat' 
Iron:  Requisitioned  afloat ' 

12 
1 
2 

3 

1 
1 

4 

5 

1 

Grand  total .... 

186 

143 

19 

9 

2 

4 

9 

1  Expenditures  on  13  only. 
«  Expenditures  on  5  only. 

REPORT  OF  U.  S.  SHIPPING  BOARD. 


71 


SCHEDULE   7. 

Statement  of  vessels  lost  from  incejytion  to  Feb.  28,  1921, 


Total. 

Cargo. 

Refrigerator. 

Tanker. 

Type  of  construction  and 
method  of  acquisition. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Steel: 

16 
3 
8 

18 

19 
8 

11 

91,504 
19,215 
35,  OOS 
73, 916 
93,  503 
45, 680 
97, 108 

16 
2 

8 
13 

18 

8 
8 

91,  504 

i 

19, 175 

1 

Charted 

35, 068 
54, 115 
87, 903 
45, 680 
55, 910 

j 

1 

Requisition  afloat 

Requisition  on  ways 

Req  uisition  dutch '. 

1 

4,992 

i 

5,600 

Totalsteel 

83 

455,  994 

73 

389,  355 

1 

5,600 

1 

4,992 

Wood: 

20 
1 
1 

72, 356 
2,214 

20 

72,356 

Seized 

Requisitioned  afloat 

Total  wood 

22 

74,  570  1          20 

72,  356 



2 

7,000  1            2 

7,000 

1 

1 

Composite;  Contract 

1 

3,  575  1            1 

3,575  [ 

Grand  totali 

1108 

541, 139            96 

472,286  1            1 

5,600              1 

4,992 

Freight  and 
passenger. 

Motor  boats. 

Sailer. 

Tugs. 

Barges. 

Type  of  construction  and 
method  of  acquisition. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead-     , 
weight 
tons. 

*^  um- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Num- 
ber. 

Dead- 
weight 
tons. 

1 

1 

40 
7, 000 

1 

3 

4,459 
41,  198 

1 

3,350 

1 

Seized 

Totalsteel 

4 

45, 657 

2 

7,040 

1 

3,350 

1 

Wood: 

1 

2,214 

1 

1           2, 214 

1 

1 

4 

45, 657 

2 

7,040 

2 

5.  564  1        1 

1 

l_ 

1  Expenditures  on  91  only. 


SCHEDULE   8. 


Statement  of  vessels  under  construction  in  uet  basin,  on  ways,  and  keels  not  laid,  as  of 

Feb.  28,  1921. 


Total. 

Cargo. 

Tankers. 

Passenger  and 
freight. 

Type  of  construction  and 
method  of  acquisition. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Num- 
ber. 

Dead- 
weight 
tons. 

Steel: 

Contract 

50 
1 

553,  450 
12,  500 

20 
1 

193,  550 
12,  500 

13 

138,  900 

17 

221, 000 

Requisitioned 

Totalsteel 

51 
1 

565,  950 
7,500 

21 

206, 050 

13 

1 

13.8,  900 

7,  500 

17 

221, 000 

Concrete:  Contract 



Grand  total 

52 

573,  450 

21 

206,  050 

14 

146,  400  i          17 

221, 000 

72 


REPORT  OF  U.  S.  SHIPPING  BOARD. 


SCHEDULE   9. 

Statement  of  ovmed  vessels,  tugs,  and  barges  (available)  as  of  Feb.  ?8,  1921. 


Total. 

Cargo. 

Refrigerator. 

Tanker. 

Type  of  construct  ion  and  method 
of  acquisition. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Steel: 

1,174 
21 

212 
34 

8,020,725 
107,504 

1,424,766 
307,245 

1,040 

20 

186 

7 

7,072,182 

159,304 

1,228,422 

29,811 

8 

67,281 

72 

697,426 

7 

44,722 

14 

110,975 

Total  steel .        .          

1,441 

201 

15 

6 

9,920,240 

1,022,393 

53,550 

.S2. 78.-? 

1,253  I  8,489,719 
275      1.022.393 

15 

112,003 

86 

808,401 

Wood'  Contract                         

15 
2 

53,550 
6.500 

4 

26,283 

1,753 

11,028,966 

1,545     9.572. 1G2 

15 

112,003 

90 

834,084 

Type  of  construction  and  method 
of  acquisition. 

Freight  and 
passenger. 

Transports. 

Colliers. 

Tugs. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Num- 
ber. 

Dead- 
weight 
tonnage. 

Ocean 

Harbor. 

Steel: 

6 

1 

78,214 
8,200 

13 

105,622 

35 

3 

29,675 

2 

10,972 

27 

277,434 

Total  steel 

34 

363,848 

16 

135,297           2 

10,972 

35 
2 

Wood:  Contract 

14 

! 

Grand  total 

34 

363,848 

16 

135,297 

2 

10,972 

37 

14 

o 


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